This is a WEEKLY chart of FB. You may need to look at the daily chart to see some of the things I am talking about.
If you are a bear, you probably pondered this question all weekend. Last week was not such a great week for Facebook. And Friday was not a good day for Facebook. You had to be wondering if there would be continuation to the downside as this week...
As Facebook made new highs, I've noticed a bearish Butterfly forming in the daily chart. The setup was sent to the Elite Zone members last week and today, the stock reached the first target zone.
Next target levels are 80$ and 78$ but for now, the stock is at support zone - Could rally or create a little pullback from here
Outside daily bbands - FB going to reverse hard here. Looking for a daily candle whose body is > 70% or > 80% outside of daily upper band.
Intraday short set up tomorrow will be another burst up of price above 15 min upper bollinger band, most likely will happen on market open - gap and go, first 15 minutes to half hour.
Gonna short this thing.
See chart notations, 3 possible bearish targets should market allow selling. Large opening gap marked with yellow ellipse is a high probability target, look for future breaks of trend lines marked on chart which would be earliest signs of bearish bias.
With its IPO in May 2012 it is difficult to know what price action it might have formed. However, based on the price action since low in September 2012, it is fairly clear that we have ABC retracement rally which is likely to complete soon and in 80-82 price zone which could it self be a larger Wave (B) suggesting that we could have major Wave (C) to commence...
Price has been trading within a bullish uptrend channel, from July 2013 to the present.
The horizontal support levels within the channel are 45.00, 53.50 and 71.60.
We note that Price has found support at 71.60 and is looking to trade higher.
We also observe a somewhat fuzzy Elliott Wave Pattern forming, between May 2014 up till now.
We project that the price is...
Shorted Facebook on the day of announcement knowing that the HFTs (High Frequency Trading bot) will pump it up high into the sky... (Same for Twitter)
It is now approaching the support level at $71.
Target = $85.
If there are no major issue such as Ebola outbreak, Israel/Gaza war escalation, etc... This bull run should at least last for another 6 months to 2 years...
I would expect the high to be in the region of 112 if the uptrend continues and we break through the 2012 level of 100.72.
The MT AutoFib Indicator and MTHorizontal Levels Indicator show levels of horizontal support and resistance in the current market structure.
More details of the indicators used here are available from Chart > Indicators > MarketPlace > ...
FB is not my favorite share. Fundamentally I do not understand its value. Totally not. Then the late IPO, tons of pre IPO VC investments, employees loaded with shares. A lot looking for profitable exits. So this should be a share, that could be hit hard when the tide will go. But maybe not yet.
The patterns: the inner structure of the wave show a nice likelihood...
Current price presents a relatively low risk entry point to Facebook and a potentially high returns over the coming days.
Will we finally break out of the green trend line that Facebook been trading on for the past 3 months?
Stop loss: 63.83
Open: 66.97
Target: 82.32+
After consolidating for a few months, Facebook has been rallying again, and with good reason. These guys are so diverse, they are the Amazon of Social Media. I believe it's on target to hit $100 by early 2015.
Above the Ichimoku Cloud and staying in upper Bollinger Band - there is good technical support below.
Follow me on StockTwits:
stocktwits.com
