Hello fellow traders. In this technical blog we’re going to take a quick look at the charts of Facebook. As our members know, early in October, Facebook has incomplete sequences in the cycle from the July 2018 peak. The Stock was still missing another swing down to complete proposed pattern. Consequently , we expected Facebook to find sellers in 3,7,11 swings sequences. We advised clients to avoid buying FB last month and keep on selling the rallies when given the opportunity. In the charts below, we’re going to explain the Elliott Wave structure, forecast and trading strategy.
FACEBOOK Elliott Wave 1 Hour Chart 10.17.2018
As we can see at the charts below, FB is doing short term recovery, labeled as wave (X) blue. Proposed short term bounce seems to be unfolding as a Elliott Wave Double Three pattern. Recovery has reached extremes at 160.3 area. We recommended members to sell FB at the blue box ( 160.31-165.87) for further downside. As we have incomplete bearish sequences in July and August cycles, we expect sellers to appear at that area for a 3 waves pull back at least. As soon as the price reaches 50 Fibonacci Retracement against the X red low, we will make our Sell positions Risk Free. Stop Loss of the trade is a break above 1.618 Fibonacci extension (165.87)
FACEBOOK Elliott Wave 1 Hour Chart 10.29.2018
FB did find sellers and gave us the decline from the blue box inflection area as expected with the actual high coming at 160.47. As a result, members who took short trades are now enjoying profits with risk free positions. Price then was doing recovery against the 160.47 peak that can complete at 149.5-152.73 area. Short term view suggests that as far as 160.47 pivot holds, more weakness is expected.
Keep in mind marked is very dynamic and proposed view could have ended in the mean time. Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room.
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