Facebook Triangle Pattern at 38.2% Fib Signals Uptrend

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.

Price Charts and Technical Analysis

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 4’).

The trend lines and the 21 ema zone are critical for the next price swing:

• A bearish breakout could indicate a larger wave 4.
• A bullish breakout could indicate the continuation of the wave 5.

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.

• Bullish break: price is building a 123 wave (green).
• Bearish break: price is building a larger wave C (purple) or even an ABCDE triangle.

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Good trading,

Chris Svorcik

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