Dear traders,
Facebook (FB) is showing a perfect uptrend alignment. We can see this via the moving averages (MAs): price is above the 21 ema zone, which is above the long-term MAs.
Will the uptrend continue and when should the bulls be worried? Letβs review.
Facebook showed a strong bullish momentum. This is probably a wave 3 (pink). The retracement has respected the 38.2% Fibonacci retracement level.
The sideways price action has either completed a wave 4 at the previous bottom (pink) or could complete it in the near future (wave 4β).
The trend lines and the 21 ema zone are critical for the next price swing:
The bullish targets are located at $325 and $350. A break below the 38.2% and 50% Fib make the wave 4 less likely.
On the 4 hour chart, we see two patterns offered. This will depend on the breakout direction below or above support and resistance.
The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter.
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