Un till a better picture presents itself we will view the action over the past seven/eight months as a corrective , counter-trend A-B-C. It stalls every time it hits the 4th of previous degree level which it may yet marginally break , but time seems to be running out. It results today were not particularly promising.
Facebook looks well done here.
Our first blog ever on this stock was done on the 27th of January, two working days after the stock appeared to have peaked. This blog has been running now for more than 1100 working days and AC.a is a widely held stock for some odd reason so it is interesting to note that getting it right like this has a chance of 1 in 550. Additionally I might add that I do not have a computer assisted monitoring system that alerts me to these events. When brokers say “you cannot time” the market they really mean “ I cannot time the market and I am not even going to try”.
In any event the stock is down almost 40% and one should expect , as a minimum, an A-B-C down where more often than not the C is equal to the A. That gives a target of about $5 which conveniently coincides with the 4th of previous degree. We can be wrong but we do try.
We got some pretty good calls on Facebook and hope that will continue. This is a SELL when the trend line is reached (about $66 maybe). We would not wait for that, or a possible “throw-over”, and would play it safe and sell right away. This is a semi-log chart; they work better when a large distance is covered in a short time. From $17 this is almost a four-bagger in little more than a year. The chart is a very , extremely, clear and well articulated wedge that is working itself into a corner. In the unlikely event that this is an incorrect interpretation one would still expect a drop in a wave 4 to about $45 in the best alternative scenario. A sell. See also previous blogs!