Social Media Stocks update 9/13/2015: FB, LNKD, TWTR

FB: The recent late august sell-off on FB (and of course all other stocks) caused some serious problems for the count I had (intermediate iii being the shortest wave for example). I’ve been going over FB’s chart a lot and especially the recent price action, trendlines, as well as the 80/20 rule (a trade through $80 will lead to the next higher $20s; in this case $120s) So here it goes. The recent high and low were (yellow) major 3 and 4, respectively. We get a perfect tag of the lower yellow trendline that connects major 3 and 4: perfect elliot wave channel. Then have (red) intermediate ii and iv of major 3, also making a perfect wave channel, and 5 waves up off intermediate iv to complete major 3. Note that major 4 found support at prior resistance (white horizontal line: around the (green) minor 1 and 4 of intermediate iii levels). Note that these minor 1 and 4 do not overlap ($72.59 vs $73.45), also minor 2 was a zigzag while minor 4 was a flat (perfect alternation). In addition, intermediate iii is now exactly 1.236x intermediate i, from ii. Perfect too. Last but not least, major 2 and 4 also alternate. While 2 was a benign flat, 4 is a (vicious) zigzag. All in all, all the micro counts, down to the nano-wave level now fit. Perfect.

FBWhen we zoom in on the charts we can place  tentative (Red) intermediate i and ii labels off the major 4 low. Using the standard fib extensions of 176.4-200% for intermediate v (major 5 and thus Primary I) we can see it targets the low $120s. This rimes perfectly as well with the aforementioned 80/20; especially since FB traded THROUGH $80 (all the way to $99).

FB2

 

LNKD: The short and sweet story for this ticker is that it did tag the ideal Primary II box (50-76.4% retrace of all of Primary I), but that the wave count suggests we only have major a down completed. Hence, I expect major b to bounce to prior resistance to around $240. Using a major c=a relationship we then get a $120ish target for all of II; well within the primary II targetzone box and around the major 4 low and major 1 top.

lnkd

 

TWTR: IMHO, this stock is likely not finished to the downside. My ideal target is a major c=a relationship from (yellow) major b, as well as an (Red) intermediate c=2.00x a, from intermediate b. Both then target $10ish. That’s my preferred price target for this stock. We’ll have to wait and see if it gets there as corrections are very difficult to track.

TWTR