How far could FaceBook face plant? Down to the 2019 low.
Firstly, a hat-tip to Wyckoff Analytics for identifying this Meta Platforms short as structural trade, comparing it to the structure of NFLX. Pure genius!
Today, that seems to be paying off with FB down as much as 9.36% in extended hours trading.
The above chart shows my analysis of possible targets using Wyckoff P&F charting method. You can see that the first target from the original apex distribution, which started in August 2021, has been met pretty perfectly by this current (prospective) re-distribution structure. The Wyckoff methodology has us look out for a trading range at the target, and that is exactly what we got.
That trading range is looking a lot like re-distribution, especially given the overnight price action. So, I have added some targets based on this re-distribution structure. Price is already in the zone of the most conservative target. That might mean that there is some consolidation here as a Major Sign of Weakness (MSOW). Two more aggressive counts are provided of 138-150, and 99-138. I will look at some "fine tuning" of these with intra-day counts later.
The structural analog targets around $115, which is the center of my most aggressive P&F count and targets the 2019 low. It's really powerful when two separate techniques confirm each other.
As always, we need to judge the market by its own actions. The analog and P&F counts could both fail, and we might find that the current structure is actually accumulation. So, keep on your toes, but I'm personally short FB and I'm not exiting yet.
Today, that seems to be paying off with FB down as much as 9.36% in extended hours trading.
The above chart shows my analysis of possible targets using Wyckoff P&F charting method. You can see that the first target from the original apex distribution, which started in August 2021, has been met pretty perfectly by this current (prospective) re-distribution structure. The Wyckoff methodology has us look out for a trading range at the target, and that is exactly what we got.
That trading range is looking a lot like re-distribution, especially given the overnight price action. So, I have added some targets based on this re-distribution structure. Price is already in the zone of the most conservative target. That might mean that there is some consolidation here as a Major Sign of Weakness (MSOW). Two more aggressive counts are provided of 138-150, and 99-138. I will look at some "fine tuning" of these with intra-day counts later.
The structural analog targets around $115, which is the center of my most aggressive P&F count and targets the 2019 low. It's really powerful when two separate techniques confirm each other.
As always, we need to judge the market by its own actions. The analog and P&F counts could both fail, and we might find that the current structure is actually accumulation. So, keep on your toes, but I'm personally short FB and I'm not exiting yet.
Comment:
FB is still "under the ice". I'm expecting more weakness to come.