FB update: bull flag and ascending triangle are forming. $100+ likely next target

“$100 next target!?” I hear you think, “FB has gone nowhere over the past 7 months”. Well, exactly! In a bull market that’s a very nice consolidation and the technical chart pattern that is developing can be called a bull flag. In addition, an ascending triangle is forming, which is also a bullish formation. See weekly chart below.

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face book update 3182015b

In addition, the TIs are looking healthy, with the FSTO pointing up, and producing -what I call- a bullish hook. If these chart patterns play out then the pennant of the bull flag formation targets exactly the weekly R2 level at $100 and change. That’s 25% upside potential from current levels. Once that level is reached we should re-assess the charts and count, as per standard Fib-extensions FB could actually very well reach $120+. Namely, see the daily chart below.

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face book update 3182015

Again, we see the consolidation of price over the past 6-7 months. I.I counts the move from the April 28, 2014 low @ $54.66 to the October 28, 2014 high at $81.16 as intermediate i of major 5 of Primary I. Then the entire consolidation was most likely intermediate ii. From the intermediate ii low we can see clearly 5 waves up (white i, ii, iii, iv, v) to $81.99 in a perfect (white) Elliot Wave channel, also making a new ATH, labeled as minor 1. After that price traded down into the ideal 50-61.8% retarce for a 2nd wave: minor 2. Price over the past 3 days has launched out of it, suggesting a 3rd wave is starting. Note that the chart shows the 3 purple horizontal S/R levels. Price is now at the 2nd highest level and needs to break and close above the 3rd highest to confirm this bullish count. If it fails to do so, and falls below the lowest purple S line then the bullish count is off the table.

Using intermediate i and ii, one can calculated ideal wave iii, iv and v targets at: $110-$115, $95-$100, and $120-$125, respectively. The current 5 waves up and recent low suggest a first target at the low $90s, which would coincide with the weekly R1 level at $89 and change.

Of course I.I. members were already alerted of this count and targets weeks ago, but then again it pays to become an I.I. member: forewarned is forearmed!

 

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