Ever since FB went public back on May 18th, 2012 it has been falling consistently. Sure, it has had its bounces and small rallies, but sellers have so far come in strong when it starts to show any strength. I believe that a larger triangle is playing out and we are seeing huge corrective moves. The reason I say this is that there are no 5 wave moves since it has gone public. These are all simple a-b-c moves. It looks like we have completed our (c) of D wave and are now currently working on (a) of E. Initially targeting the $20 region, and once it makes its way down to the region, I expect a much larger break to the downside. I say this because triangles break in the direction of the trend, and just by glancing at the chart you know the trend is down. Again, when you see analysts report on a stock on why a stock is going to see much higher levels…. remember that the market does not move on logical thinking. You need to look at a chart, it will tell you the direction! In Facebook’s case, it is down, and will NEVER see $38 EVER again.
Author: Peter Nitso pnitso@yahoo.com