Elliott wave analysis of Facebook - A top is in place at 86.07

Facebook a top is in place at 86.07 

I have been looking for confirmation that a top was in place at 86.07 and yesterday saw the first close below the support-line from 54.66 and at the same time, we saw support at 77.26 pierced, these two breaks of support does indicate that a top is in place at 86.07 and a correction of wave [3] now is about to unfold. The first corrective target for this correction is found at 69.48, which marks the 23.6% corrective target, but a more likely target is the 38.2% corrective target at 59.55, which is also close to the bottom of wave (4) of one lessor degree.

If you look back in my previous posts you will see a post from March 24 where I mention the possibility of an ending diagonal (you can see the post here). That post was filed at the very same day that the top at 86.07 was being set. I that post I also said that the top likely would be found in the 86 - 87 area and it certainly did.

Well this ending diagonal count is as valid as the count shown above and this count also calls for a correction unfolding. Whenever an ending diagonal is finished, we should expect to see a return to the origin of the formation, which in this case is at 43.55 and it should take half the time it took for the ending diagonal to develop, which would call for a decline to 43.55 (about a 50% decline from the top at 86.07) in about 6 - 9 months.

Let me say already, if a decline to 43.55 is seen, that would call for a relabeling of the larger picture, but ultimately be much more bullish long term.  

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