Meta Platforms (META): Final Pieces Of A Grim Looking Puzzle

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Charts created by writer from C Trader

This article is about Meta’s (NASDAQ:META) current wave pattern, where we will examine where this share price may be headed using the Three Wave Theory.

A complex structure this Meta structure, this is a puzzle with many pieces. The reason being is that it is actually a second third wave in this macro pattern. The three wave theory looks for wave three to numerically replicate wave one. That it has already done, so I am forced to move to the second third wave which, if it replicates its wave one, will see Meta land at $18.

Topping out at $384 in August 2021, Meta then dropped to $308 where it found support. From that support, it formed an extremely wick-heavy bearish candle, which were actually two internal attempts on the weekly to break into higher high three wave patterns. This in turn resulted technically in a rejection wave, which can now be interpreted as a wave two, opening the door to the first of the third waves in this structure. By the break of $308 we will see below the completion of the first third wave at target $232 which then went on to act as a resistance area in the now macrostructure.

Below is a snapshot of the first three-wave pattern. We can see that after an initial attempt to hold above support, Meta dropping with intent to numerically replicate its wave one bearing and land at $232.

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Facebook monthly First three wave pattern

Wave one : $384-308

Wave two : $308-353

Wave three: $353-$232

Now we can move to examine the second pattern. We can see on the chart below the high of $353 breaking down through support to bottom at $185 where Meta found a bullish monthly candle which forms the rejection for the next third wave to break below. The move down between $353-$185 forms the current wave one. The bullish rejection candle $185-$231 forms the wave two. Although the following candle does attempt slightly at new highs upwards, it technically goes towards forming the wave two also.

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Facebook Current Wave One Two

Wave one $353-$185

Wave two $185-$236

Wave three $236-(target $18)

Now we can take a look at the overall current three-wave structure, looking to see where Meta might land.

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Facebook overall structure

With the break below $185 technically commencing the second third wave which I will look to replicate its wave one, I have also outlined the Fibonacci 161% from this current third wave along with the Fibonacci 423% from the first third wave as the 261% has already been broken through exactly at $185 support. The reason for this is because of the complexity of the structure. The second third wave actually has a lower probability of numerically replicating its wave one than that of a first third wave, as at some stage a third wave in any structure will fail, so the first in any given timeframe has a higher probability of completing. I have tried to identify any confluence areas and while there are no obvious exact confluence zones jumping off the chart, these levels may assist when looking for reversal patterns.

Conclusion

This pattern is undoubtedly complex to pin exactly factored by the second of two third waves along with a very low target of $18. The fact remains that we can see the first completion, so I must technically move to look for the second completion regardless of pricing. The current wave one is outlined, using the Three Wave Theory I will look for it to be numerically replicated.

I will outline my target of Meta arriving at potentially $18 in the next 180 days, however, I will be looking keenly for three wave patterns that start to accelerate upwards at the key targets of $82 and $62 outlined as this current structure plays out.

About The Three-Wave Theory

The three-wave theory was designed to be able to identify exact probable price action of a financial instrument. A financial market cannot navigate its way significantly higher or lower without making waves. Waves are essentially a mismatch between buyers and sellers and print a picture of a probable direction and target for a financial instrument. When waves one and two have been formed, it is the point of higher high/lower low that gives the technical indication of the future direction. A wave one will continue from a low to a high point before it finds significant enough rejection to then form the wave two. When a third wave breaks into a higher high/lower low, the only probable numerical target bearing available on a financial chart is the equivalent of the wave one low to high point. It is highly probable that the wave three will look to numerically replicate wave one before it makes its future directional decision. It may continue past its third wave target, but it is only the wave one evidence that a price was able to continue before rejection that is available to look to as a probable target for a third wave.

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