Facebook has been a wonder to behold since its IPO in May 2012. At first the IPO seem to be an disappointment as FB quickly dropped from 45 to 17.55 in early September 2012. If you have been following me on my blog (The Elliott Wave Surfer) knows, that I call the bottom and the following rally almost to perfection.
The rally of the 17.55 low has been a perfect five wave rally to 72.59 (a rally of 313%). The internal Fibonacci relationships between the waves has been just perfect.
Wave 1 was a pretty small wave rallying from 17.55 to 23.24.
Wave 2 became a simple zig-zag correction, that corrected almost 81.6% of wave 1.
Wave 3 became an extended wave by being 685.4% of wave 1 at 58.80 (the top of wave 3 came in at 58.96).
Wave 4 alternated from wave 2 by being an expanded flat correction.
Wave 5 became a bit unusual as it ended at 50% of the distance travelled from the bottom of wave 1 to the top of wave 3 added to wave 4 at 72.68 (the top of wave 5 came in at 72.59)
Since the wave (3) top at 72.59 we have been in a correction of which we have seen wave A down to 55.44 and wave B, which is still unfolding has become a complex double combination. However, wave B has almost corrected 61.8% of wave A and a small five wave rally out of the minor b-wave triangle seems to be complete or will complete shortly (see the 4 hourly chart below).
I will now be looking for signs that the correction from 55.44 is over. The first sign will be a break below minor support at 64.30 and more importantly a break below support at 61.79 that will confirm, that wave B is over and wave C lower towards at least 48.86 is developing.
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