Currently FB is bearish, below 10 & 50MA and TRIX below mid-point.There was plenty warning of a top when FB had a double breakout failure and negative divergence near clone resistance.I consider DIVERGENCES early warning signs of tops & bottoms especially on monthly charts.With FB we also had a DOUBLE negative divergence, extra warning of a top. IF trend continues the next 2 near term targets are about $25.5 and $24.5. If things quickly turn and FB breaks minor resistance look for near term target near top of CLONE.
Comments
nmike
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Fisher 34 SPIKES at a beginning of an up trend are often a sign that bulls are in control but as the trend gets older and you get a negative divergence Fisher SPIKE, it is often a sign that a temporary or long term top is just ahead
nmike
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>>>>>>another CLONE target hit as per last comment, next near term upside target using a 45 min frame
nmike
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>>>>> CLONE Hit see chart near bottom of commentaries, currently FB is over extended as shown by the Fisher spike, it's likely that FB will consolidate within the upper 50% area of CLONE 3 before further upside
littleriver
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Thank you for the update nmike. I am finding the fisher most useful. Thank you!!! I see sometimes price continues to climb or fall despite exhaustion spikes and divergences. Do you have a way discerning which will keep going and which will reverse coarse? I find support and resistance points to be most useful along with breaks of rsi but wondered if there was something more I could add? Thank you again.
nmike
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@littleriver, another way to confirm Fisher exhaustion is to use the dual Fisher 34 &100 technique, if an exhaustion spike forms on both Fisher 34 &100 more likely then not it's a true exhaustion ,see chart below
nmike
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@littleriver......just as a reminder, all Fisher patterns, other indicators patterns and divergences must be supported by candle sticks bearish or bullish price action
dan_keydcuk
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All the best on your trade nMike. I agree to this. As a fundamental speculation, I believe that FB is going to go through a temp plummet stage and will stay low for a while, only to come much stronger when copycat competition gives up following the idea that is truly original with the exception of a possible influence of MSpace. Does anybody still use MySpace? LOL
nmike
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>>>>> FB likely next upside CLONE target
littleriver
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Thank you for the update. I like your target. Playing with this clone chart tonight and wondered if you had any advice or thoughts on the subject. I erased my reference circle already but marked my three points of interest in blue. They are located in the far left top square.
nmike
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@littleriver that's not bad, here's my version, I always like to show clearly the reference box