At first glance, the trend is obviously up. Facebook has been a strong name over the last few years… but has it’s run come to an end?

Based on the weekly, utilizing Elliott Wave, this feels like a supercycle impulse wave completing, and potentially a correction wave about to begin.


Weekly

fb weekly elliott wave

Compare to full cycle

complete market cycle

And what is there to say about this resistance level on the weekly chart? Playing a factor since November of 2013…

fb resistance

Daily

As for the daily… my first gut feeling a channel up, into the upper channel extreme and the 2.618 fib level. I would expect a retracement touch-and-go normally (which we still might get). However, being a potential supercycle wave 5 top, we could see this channel break to the downside in the coming months. I certainly don’t think 120s are out of the question for the big wave 2 correction dip.

fb daily channel up

In the end, I wouldn’t be long into earnings on the 26th. If you’ve been in $FB for a while, based on these key levels, now might be a good time trim down and set the trail stops tighter.

As always, earnings plays are risky. The above mentioned is not investment advice, but notable market action. Invest at your own risk.

$FB pre-earnings analysis

Leave a Reply

Your email address will not be published. Required fields are marked *

Password Reset
Please enter your e-mail address. You will receive a new password via e-mail.