Facebook (FB) Price Channel

FB Red Price Channel is in its Critical Decision Wave

FB Red Price Channel is in its Critical Decision Wave

FB is in the critical decision wave of the red price channel within the navy rising megaphone.  This is the point where FB either breaks out into a melt-up channel or starts a channel top.

Sornette recently called a bubble on the FANG stocks.  60% of the time after a Sornette bubble call you’d see a crash of at least 20% within two weeks of the call.

That means FB could complete a fast top here (green scenario) before a crash to the bottom of the navy blue rising megaphone.

The 40% of the time Sornette bubble calls don’t play out as a fast crash, they either make a fast consolidation and break out into another melt-up (purple scenario), or they head into a longer-term consolidation.  The longer-term consolidation is typically a megaphone that keeps megaphoning long enough to produce a significant retrace of the bubble move (blue scenario).

VZ Megaphone False Top

Falling Wedge to Blue Rising Megaphone Bottom

VZ has Formed a Falling Wedge to its Blue Rising Megaphone Bottom

VZ has Formed a Falling Wedge to its Blue Rising Megaphone Bottom

VZ has formed a falling wedge to its light blue rising megaphone bottom.  It’s tagging the bottom of that falling wedge today.

The move down can’t end on an exact tag of that wedge bottom.  So VZ could pierce the wedge bottom a bit or form a megaphone bottom from here to tag the bottom of the light blue rising megaphone and then take off upwards past the July 2016 high.

Or VZ could break out the bottom of the falling wedge and through the bottom of the blue rising megaphone back to the red megaphone VWAP and reverse there for a trip back to the all-time high.

Neely Long-Term Set-Up Targets at Least the All-Time High

VZ has a Neely long-term set-up on the chart for a trip back to at least the all-time high.  The set-up is the crash into the 2002 low, partial retrace of the crash with extended topping, then retest of the 2002 crash low.  After that retest you’d expect to see a return to the all-time high and the price could go well beyond that.

If VZ retests the red megaphone VWAP, we’ll likely just be redrawing the blue rising megaphone.  If VZ turns at or above the blue rising megaphone bottom, it will be putting in a rising megaphone extension within it.  Either way, VZ should be setting off soon on a major move up.

A Breakout Through the Navy Megaphone VWAP Suggests a Substantial Higher High

VZ essentially bogged down at VWAP of its dot-com megaphone top (navy blue megaphone).  The red megaphone is part of a major bottoming complex and is now legal for an upwards breakout targeting the 85-90 area or higher.

Potential Sornette Melt-Up Set-Up

If VZ makes it back to the red megaphone VWAP, it will also have formed a Sornette melt-up set-up.  A breakout through the July 2016 high would suggest not only a huge move, but an extremely fast one to at least the target area.

Neely Set-Up on T for Return to All-Time High

AT&T has a Neely Crash Set-Up for a Return to the All-Time High

AT&T has a Neely Crash Set-Up for a Return to the All-Time High

T followed up on its 2002 crash with a partial retrace and a retest of the crash low in 2008. That is one of my favorite Neely set-ups for a return to the all-time high.

T formed a megaphone top (red) on its partial retrace and now it is bogged down at that megaphone VWAP.  It looks like it’s forming a triangle there, but that could morph into any kind of consolidation you can think of.

Once T breaks out from the VWAP consolidation, the next target is the all-time high near the megaphone top.

Long-Term Neely Set-Up on X

X's Crash, Partial Retrace, and Return to Crash Low is a Neely Set-Up for a Big Move Up

X’s Crash, Partial Retrace, and Return to Crash Low is a Neely Set-Up for a Big Move Up

X is trying to put in an island bottom just below VWAP of the purple megaphone.  A breakout from that island bottom through VWAP would set up a move to the megaphone top.

After a stab at VWAP from the top, a breakout from the purple megaphone would target roughly the all-time high, depending on exactly how long it takes for everything to play out.

The long-term chart is also one of my favorite Neely set-ups–a crash, followed by a partial retrace and extended topping, followed by a return to the crash low.  Next target tends to be the pre-crash high.

X Appears to be Putting in a Beautiful Rounded Bottom Just Below Its Gap Down and Purple Megaphone VWAP

X Appears to be Putting in a Beautiful Rounded Island Bottom Just Below Its Gap Down and Purple Megaphone VWAP