Facebook - Is about to lose a lot of friends

Facebook - Is about to lose a lot of friends 

Since the September 2012 low at 17.55 FB has rally almost 690% and gather a lot of friends. However, FB is about to lose some of its friends in the months ahead. 

From an Elliott Wave perspective a five wave rally has been seen of the 17.55 low. The Elliott Wave Principle states that after a five wave rally a corrective decline should be seen. The five wave rally  in wave [3] from 17.55 most likely ended at 121.08 and a corrective decline in wave [4] is about to unfold.

So where can we expect wave [4] to end? Normally the low of wave 4 of one lessor degree, will be the main attraction. In the case of FB that means a decline to 72.00 or very close to a 50% correction of wave [3].

Since the low of wave 4 of [3] we have seen a pretty slow rally with overlapping waves, which is the signature for an ending diagonal. Once the ending diagonal is complete a decline back to the origin (in this case the low of wave 4 at 72.00) should be seen within half the time it took the ending diagonal to build. As it took 37 weeks for the ending diagonal in wave 5 of [3] to build, we should expect a decline back to the 72.00 low within 18.5 weeks.

The trigger for the expected decline, will be a break below the ending diagonal support-line near 116.00 and confirmation that a top is in place and the correction in wave [4] is developing will be a break below support at 106.31.

Even though a quick decline to 72.00 is expected, the entire structure of wave [4] will most likely be much more complex. The Alternation Principle says, that if wave [2] was a simple correction and it was, as it unfolded as a zig-zag, then wave [4] should become complex and take up time. So we could be looking forward to a combination of corrections or a triangle as wave [4], only time will tell. However, the important thing here is that we have a very good idea, what to expect from wave [4].    


I recently tried a 30 day membership and I am very happy with the service. Pls keep up the great work!!! I will continue renewing!!

Hi Surfer,

Super calls !! And analysis.

Bravo for your brexit call !!
Whats next?

Ull need to update all indices!

Great call on nat gas

Just wanted to drop you a note to say great call on nat gas as it held 2.67

Great job.