These are fairly not good times to invest in social media stocks in my opinion. Giants such as
META
and
TWTR
continue to lose interest. The reports of decline in users on social media platforms have very negative impacts on the stock price. The expectation of the user is very high now and quality is the best business plan. There is room for all these social platforms but users can be fickle and they will move around.
From TA perspective these parabolic curves are great trades as the market reaches its panic and irrational buying. However - these patterns tend to have significant corrections of 62% to 79% of the price rise. Important key point of support is at 27.83 - 28 according to wave structure (IV retest from prior uptrend) and 1.618 Fibonacci extension so that is where I would consider scaling to long. Ideal buy would be at an uptrend line but big candle close down below this slope would increase the odds of vising 17 - 21.21.
Short term - I believe the stock is about to start a B leg of ABC correction - so I am expecting a retest of 32.13 - 36.20 levels then down. Not closing any shorts along the way, as this was a complete rejection of whole prior uptrend without any good stops at all. I will keep making updates as soon as there will be more news and clarity on the market.
META
and
TWTR
continue to lose interest. The reports of decline in users on social media platforms have very negative impacts on the stock price. The expectation of the user is very high now and quality is the best business plan. There is room for all these social platforms but users can be fickle and they will move around. From TA perspective these parabolic curves are great trades as the market reaches its panic and irrational buying. However - these patterns tend to have significant corrections of 62% to 79% of the price rise. Important key point of support is at 27.83 - 28 according to wave structure (IV retest from prior uptrend) and 1.618 Fibonacci extension so that is where I would consider scaling to long. Ideal buy would be at an uptrend line but big candle close down below this slope would increase the odds of vising 17 - 21.21.
Short term - I believe the stock is about to start a B leg of ABC correction - so I am expecting a retest of 32.13 - 36.20 levels then down. Not closing any shorts along the way, as this was a complete rejection of whole prior uptrend without any good stops at all. I will keep making updates as soon as there will be more news and clarity on the market.
Comment:
Thinking we should see a bounce around here or 1.618 Fib.
Trade active
