In this technical blog, we are going to take a look at the past performance of 1 hour Elliott Wave Charts of Facebook ticker symbol: $FB, presented to members at elliottwave-forecast. In which, the rally from 21 September 2020 low unfolded as an impulse structure. Thus suggested that it’s a continuation pattern. And as per Elliott wave theory after a 3 wave pullback, it should do another extension higher in 5 wave structure at least. Therefore, we advised members not to sell the stock & trade the no enemy areas ( blue boxes) looking for 3 wave reaction higher at least. We will explain the structure & forecast below:
Facebook 1 Hour Elliott Wave Chart
Above is the 1 hour Elliott Wave Chart of Facebook from 10/07/2020 Post-Market update. In which, the stock ended 5 waves rally in wave (1) at $268.33 high & made a pullback in wave (2) to correct the cycle from the 9/21/2020 low. The internals of that pullback unfolded as an Elliott wave zigzag structure where wave A ended at $258.80 low. Wave B bounce ended at $265.69 high and wave C managed to reach $256.13- $250.21 100%-161.8% Fibonacci extension area of A-B. From there, buyers were expected to appear looking for another extension higher or for 3 wave reaction higher at least. Therefore, our members knew that buying a blue box area remains the preferred path for a 3 wave bounce at least.
Facebook 1 Hour Elliott Wave Chart
Here’s the 1 Hour Elliott Wave Chart of Facebook from 10/12/2020 Midday update. Showing stock reacting higher from the blue box area as we expected. Allowed members to create a risk-free position shortly after taking the longs at $256.13- $250.21 blue box area.