Meta, 9 Nov. Elliott Waves | Gann Levels | Geometry
FB bounced precisely on the 0.5 Fib retracement (large blue box) of the previous wave 3 (yellow count). The breakout of the descending wedge gave us confidence to re-enter the trend.
The metaverse narrative is driving price at the moment. At a later stage we will see that the metaverse idea may fail for several reasons, but that time is not now. When euphoria rules, we just go with the euphoria.
Elliott:
An ABC (blue count) is likely completed, so that we can expect wave 5 (yellow count) to unfold. If correct, this will lead to new ATHs for Meta. Currently we are in wave (i) so that a deep retracement is possible. Below 318 the bullish idea is invalidated.
Gann:
Support: 312
Resistance: 370
Correlations:
Yield approaches a diagonal support at 1.500 where it could reverse. This would further strengthen DXY and hurt QQQ.
QQQ itself appears to be re-accumulating to go higher at this point.
How I trade it:
The blue box is the 38-65% retracement of the current wave. If wave (ii) retraces into this area, we get a good risk/reward opportunity to add long exposure. The idea is to participate in a wave (iii).
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In my analyses I combine Elliott waves and Gann theory to identify turning points in the markets & derive high-probability trading ideas. The strategy is to build leveraged exposure when markets are likely to expand, and to write options when markets range and volatility contracts.
BTO = buy to open
STC = sell to close
STO = sell to open
BTC = buy to close
TD = Theta Decay (for example a strangle or iron condor)
Disclaimer: The views and ideas expressed in this analysis are that of the maker, they are provided as educational information and do not constitute financial or trading advice.
The metaverse narrative is driving price at the moment. At a later stage we will see that the metaverse idea may fail for several reasons, but that time is not now. When euphoria rules, we just go with the euphoria.
Elliott:
An ABC (blue count) is likely completed, so that we can expect wave 5 (yellow count) to unfold. If correct, this will lead to new ATHs for Meta. Currently we are in wave (i) so that a deep retracement is possible. Below 318 the bullish idea is invalidated.
Gann:
Support: 312
Resistance: 370
Correlations:
Yield approaches a diagonal support at 1.500 where it could reverse. This would further strengthen DXY and hurt QQQ.
QQQ itself appears to be re-accumulating to go higher at this point.
How I trade it:
The blue box is the 38-65% retracement of the current wave. If wave (ii) retraces into this area, we get a good risk/reward opportunity to add long exposure. The idea is to participate in a wave (iii).
___
In my analyses I combine Elliott waves and Gann theory to identify turning points in the markets & derive high-probability trading ideas. The strategy is to build leveraged exposure when markets are likely to expand, and to write options when markets range and volatility contracts.
BTO = buy to open
STC = sell to close
STO = sell to open
BTC = buy to close
TD = Theta Decay (for example a strangle or iron condor)
Disclaimer: The views and ideas expressed in this analysis are that of the maker, they are provided as educational information and do not constitute financial or trading advice.