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Facebook: Triangle Pattern To Send Price To A New Record HighFacebook still remains the biggest social media platform, growing its user base to about 1.9 billion daily users and 2.8 billion monthly active users. Facebook stock was down to $137.21 per share in March 2020, losing approximately 38% in the first three-month of 2020. But boy, what an entry point that low turned out to be. Facebook stock surged to nearly $306 by August 2020, up 120% in five months. Unfortunately for the bulls, since August 2020 the bears have taken over and sent the price to $243 for a 20% correction. As of this writing, it is still down some 10% from the record high. Should investors buy this dip? Elliot Wave View The daily chart above puts the post-March 2020 surge and the subsequence sideways move in the Elliott Wave context. The surge from FB’s coronavirus low of $137.21 in March 2020 took a shape of a five-wave impulse. The pattern is labeled (i)-(ii)-(iii)-(iv)-(v) in wave A. According to the Elliott Wave theory, a three-wave correction in the opposite direction follows every impulse. And indeed, the sideways decline that started from $305.05 high in August 2020 fit for the three-wave correction. This range-bound price move that has been unfolding for almost eight months has a place in the Elliott Wave principle and is very fit for a contracting triangle pattern, which is labeled as (a)-(b)-(c)-(d)-(e) in wave B. Facebook Bears Are Overstaying Their Welcome According to the Wave Principle, a triangle usually precedes the final move of a sequence and the price will resume in the direction of the impulse once a three-wave correction is completed. Considering that the triangle corrective pattern is completed, it makes more sense to expect a rally above the 2020 high of $305.05. Aside from the Elliot Wave principle, Facebook price action has been respecting 200-day Exponential Moving Average, this indicator usually acts as a strong demand zone during a corrective phase and only reinforces our optimism. If this analysis is correct, Facebook stock has the potential to rally above $400/share, that’s a 45% advance from the current market price. What's your view on Facebook stock? Let me know in the comment. Thanks for reading! Veejahbee.
FLong
by Veejahbee
4
If you think market will be saved by 1.9 Trillion stimulus..!Today many newbies are happy because US Senate just passed the 1.9 trillion bill. But let's see what happened in the last 8 weeks in the market.(MARKET CAP CHART) The top ten companies with the highest market cap have lost almost 1.45 trillion of their market cap in the last 8 weeks. Hypothetically, IF PEOPLE INVEST THE WHOLE 1.9 TRILLION IN THE STOCK MARKET IT IS NOT ENOUGH FOR TOCKS TO REACH TO ALL TIMES HIGHS. Only Google and Berkshire behaved differently in the last 8weeks and they did not lose their market cap! Please be realistic..! PLEASE REVIEW MY PREVIOUS ANALYSIS ON MARKET CORRECTION SINCE JANUARY 29, 2021 Moshkelgosha
NASDAQ:TSLA
by Moshkelgosha
34