https://www.tradingview.com/chart/OLbtKTqz/
Well, Facebook has been in a very stable uptrend since 2013. Now, there is a good chance that this will be the end of it! 5 waves are complete and we already came back from this overextended zone (green) into the channel. Therefore we can call that an overthrow, which indicates the end of an uptrend. In combination with RSI, MACD and Histogram we can now assume that we are in for a bigger correction! (Volume was pretty high as well on that first leg down, for further confirmation)
Assuming, that this is correct, we now have to look for reasonable targets:
Of course, the finished 5 wave impulse forms a larger degree first wave, so we would generally target the 0.5 fib level! But of course we also have to look out for indications of reversal on other significant retracement levels.
Well, Facebook has been in a very stable uptrend since 2013. Now, there is a good chance that this will be the end of it! 5 waves are complete and we already came back from this overextended zone (green) into the channel. Therefore we can call that an overthrow, which indicates the end of an uptrend. In combination with RSI, MACD and Histogram we can now assume that we are in for a bigger correction! (Volume was pretty high as well on that first leg down, for further confirmation)
Assuming, that this is correct, we now have to look for reasonable targets:
Of course, the finished 5 wave impulse forms a larger degree first wave, so we would generally target the 0.5 fib level! But of course we also have to look out for indications of reversal on other significant retracement levels.