FB, GOOGL, NFLX updates 09/26

FB: Has the opportunity to stage a larger rally to the red b-wave target zone, but it will have to move and close over $170 AND overlap with the minute “a/i” label to tell us minor-c is not becoming five waves down. IF price stalls in the orange S/R zone and moves below $160, we should start looking for low $150s to complete intermediate-a instead. Hence, quite uncertain here and certainly not the great long-trade set up. In fact this is not a long candidate in my book at all since price is below its 200d SMA and 20d<50d<200d. But, if you are bold and willing to trade such setups, be my guest. Bottom line, there’s no clear long setup in place, and one should ideally wait for price to move above the dotted grey down trendline if so inclined to long FB. Until then, it can stall here and moved to the low $150s or even lower if wave-v decides to extend…

FB daily

GOOGL: Bottomed exactly at the minor-c = 1.382x a extension for what I prefer to count as intermediate-a. Note also here wave-c is not five waves down, as c-wave don’t have to be five waves down. I am now looking for a b-wave retrace of wave-b of intermediate-b (remember b-waves are always three waves: a, b, c), before wave-c takes price down to ideally ~$1060 to complete major-4.

GOOGL daily

The weekly chart below shows how price bottomed exactly at the 23.6% retrace of major-3, is now bouncing for a wave-b and should then ideally target the 38.2% retrace. This is classic, text-book 4th wave material so far. From there I expect major-5 to rally to the 176.4% extension at $1434 to complete its entire (Super)Cycle wave.

googl weekly

NFLX: Has the potential and setup to continue its impulse pattern higher. So far it looks classic, with five waves up for wave-i of 5, wave-ii did a 61.8% retrace, wave-1 of iii was ~61.8% of wave-i, and then the Fib-extensions for the green minor-waves line up very well with the Fib-extensions for the red intermediate-waves: The 200% right at the 138.2% to complete 5 of iii (all of iii) etc. I therefore expect NFLX to reach the $450s. A break below $350 will negate this pattern. One can set stops accordingly.

NFLX daily.png