I don't usually read much from daily patterns. This one is just for fun. It is going to break the lower bound of the sliding channel any time soon. But before that, it can temporarily go up a little bit.
After an AB=CD pattern the price reaches a resistance level and retraces building support. An impulsive leg up breakes the resistance level and is now in a consolidation phase. I'm looking for a retrace in the 0,618 fib line area to see the price action to enter long. First target 1,27 fib extension, second target 1,4 fib, third target 1,618 fib. Risk reward ratio 5.
With the help of excellent earnings report, $FB gapped up from the 106$ support zone to above its previous All Time Highs and remained above it when the price found support at the 116$ structure zone (resistance turned to support).
If $FB will open the new trading week above 116$ and remain above that zone, it can continue higher to complete a bearish Crab...
Facebook has formed an interesting topping pattern near Q1's high.
Recent price action in the daily, justifies at the very least a retest of the 108-106 zone, but if this level fails to hold, I could see FB trading closer to the 100 even handle in the near future.
The rally off 2016's low has been intense, and hard to catch up with for eager longs, as well as...
FB has been experiencing some decent sized sell-offs, we may expect to see this trend continue hopefully at least one or two more times until we near a strong support zone.
- Blue boxes indicate time frames measured.
- Green boxes indicate potential buy-in zones.
- Purple box represents a future possible sell zone.
I went in myself around $108.25
Hopefully...
Facebook will likely be up a little tomorrow then a sharp down move is expected on April 7 to reach support level @ 108.38.
The spirals are there to see if they will act as support / resistance.
Use the screenshot below to adjust the scale:
Cheers,
Keops
RSI Daily is approaching resistance. This diagonal trend line I drew has been very accurate, it helped me short FB during the drop from 110~ To ~90. However, the price might go up a bit more before dropping due to the really strong RSI negative divergence so monitor closely. To be safe, just short now so you won't miss the move. I'll definitely be shorting within...
