Meta PlatformsLargo
Meta, 22 Nov. Will the Head & Shoulders Work Out?
FB printed a large inverted H&S pattern and consolidates at the neckline. However, price is currently in the 50-61% reversal zone so that we need to observe positions carefully.
Elliott:
We can count a wave (i) and wave (ii) in blue, which retraced precisely 50%. Now we count the unfolding wave (iii) on a smaller degree (green waves).
Geometry:
Price reacts nicely to the current pitchfork. A breakout above the upper boundary (blue dashed line) confirms that we are indeed in a wave (iii), because it would also catapult price above the .618 retracement fib. This is important.
Gann:
Support: 340, 312
Resistance: 370
How I trade it:
The idea is to trade the inverted H&S pattern with an entry above the Gann level (341). The target of the pattern is 383. The 355 level (.618 retracement of the previous wave down) is critical because price could drop from here. In that case we are able to close at breakeven and invert the trade.
Elliott:
We can count a wave (i) and wave (ii) in blue, which retraced precisely 50%. Now we count the unfolding wave (iii) on a smaller degree (green waves).
Geometry:
Price reacts nicely to the current pitchfork. A breakout above the upper boundary (blue dashed line) confirms that we are indeed in a wave (iii), because it would also catapult price above the .618 retracement fib. This is important.
Gann:
Support: 340, 312
Resistance: 370
How I trade it:
The idea is to trade the inverted H&S pattern with an entry above the Gann level (341). The target of the pattern is 383. The 355 level (.618 retracement of the previous wave down) is critical because price could drop from here. In that case we are able to close at breakeven and invert the trade.
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