Facebook - Is about to lose a lot of friends
Since the September 2012 low at 17.55 FB has rally almost 690% and gather a lot of friends. However, FB is about to lose some of its friends in the months ahead.
From an Elliott Wave perspective a five wave rally has been seen of the 17.55 low. The Elliott Wave Principle states that after a five wave rally a corrective decline should be seen. The five wave rally in wave  from 17.55 most likely ended at 121.08 and a corrective decline in wave  is about to unfold.
So where can we expect wave  to end? Normally the low of wave 4 of one lessor degree, will be the main attraction. In the case of FB that means a decline to 72.00 or very close to a 50% correction of wave .
Since the low of wave 4 of  we have seen a pretty slow rally with overlapping waves, which is the signature for an ending diagonal. Once the ending diagonal is complete a decline back to the origin (in this case the low of wave 4 at 72.00) should be seen within half the time it took the ending diagonal to build. As it took 37 weeks for the ending diagonal in wave 5 of  to build, we should expect a decline back to the 72.00 low within 18.5 weeks.
The trigger for the expected decline, will be a break below the ending diagonal support-line near 116.00 and confirmation that a top is in place and the correction in wave  is developing will be a break below support at 106.31.
Even though a quick decline to 72.00 is expected, the entire structure of wave  will most likely be much more complex. The Alternation Principle says, that if wave  was a simple correction and it was, as it unfolded as a zig-zag, then wave  should become complex and take up time. So we could be looking forward to a combination of corrections or a triangle as wave , only time will tell. However, the important thing here is that we have a very good idea, what to expect from wave .
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