In this Elliott Wave Analysis, we will have a look at Facebook in the 1-hour chart.
Short-term Elliott wave analysis suggests that the rally to $203.55 ended in black wave ((1)). Down from there, the pullback in black wave ((2)) remains in progress in 3, 7 or 11 swings to correct cycle from 3/26/2018 low. The internals of that pullback shows an overlapping structure thus suggesting that the correction takes the form of corrective structure i.e either (W),(X),(Y) or (W),(X),(Y),(X),(Z) structure.
Below from $203.55 high, the pullback is proposed to be unfolding as Elliott Wave double three structure where blue wave (W) ended at 193.11, blue wave (X) ended at 200.75, and blue wave (Y) of ((2)) remains still in progress. The internal of blue wave (W) also unfolded as a double three structure where red wave W ended in 3 swings at $199.31, red wave X ended $202.24 and red wave Y of blue (W) ended at $193.11 as a Flat. Up from there, blue wave (X) also unfolded in 3 swings as Elliott Zigzag structure with red wave A ended at $199.40, red wave B ended at $195.98 and red wave C of blue (X) ended at $200.74 high.
Down from there, blue wave (Y) of black ((2)) remains in progress as another double three structure. Internals of that decline ended red wave W in 3 swings at $192.22 and red wave X ended at $197.45. Near-term focus remains towards $188.92-$186.90, which is 100%-123.6% Fibonacci extension area of blue wave (W)-(X) to end black wave ((2)) pullback. Afterwards, the stock is expected to find buyers for black wave ((3)) higher ideally or should do a 3 waves reaction higher at least. We don’t like selling it into a proposed pullback as the right side remains to the upside in the higher timeframe.