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).

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