FB Day chart shows price is in uptrend channel but attempting to retrace a Bearish AB=CD pattern.  There’s some convergence at the bottom of the channel around 123.88 but there’s both the ideal minimum retrace target 119.49 and a Shark PRZ at 116.71 calling price to it, thus that’s going to not only be a magnet but also a region for Bulls to defend.  Downside continuation has a larger Shark PRZ at 110.94 for another decisive point.

The caveat for the Bears is that price is still in an uptrend and this current movement is considered a Pullback only until proven otherwise, meaning price will need to ignore the opportunity to bounce at the noted support targets.  A bounce off the 119.49 to 116.71 implies a test of the channel for a validation of the breakdown, but a hold inside the channel has the ABCD extension targets 13.09 and 147.48.

FB Day chart

For an intraday perspective, I’m looking at an Hour chart, this shows that a bullish Butterfly initial test is being respected.  Due to expansion the probability is a stall or bounce into resistance, there is a slight upside pull but if price cannot take out 127.61 the scenario of stall has the upper hand.

There’s  a couple things worthy of point out.  It’s not unless this Hour Butterfly can retrace 100% to 133.50 would the Day chart channel remain in play, and a strong obstacle where intraday Bears will need to defend is not only the ideal minimum retrace target of 129.04 but more so the top of the GRZ at 130.74.

The other thing I want to point out is it’s not the bottom of the Butterfly PRZ but rather the Crab PRZ at 123.50 that will help price breakdown the Day channel and fish for the Shark target at 116.71.

FB Hour chart

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