Chart of the Week: Meta Platforms
This week we’re going to be focusing on Meta Platforms; symbol META. Let’s take a look at the chart and see what we can figure out here.
As you can see here, this stock had a nice little consolidation range over here that turned into some pretty good solid support. You can see here that as the stock was consolidating around this $480 – 500 range, it built some really nice layers of support with some buyers and sellers. That’s what support is. It’s the point where buyers and sellers come in. Sellers finish up their duties – they’re selling there – and buyers all of a sudden start to step in. It’s a little congestion area, call it that.
But we also see a nice pattern of higher lows and higher highs here. That is our text book definition of an uptrend.
We also have MACD that’s on a buy signal, and Chaikin money flow has been very strong. It’s been bullish.
And take a look at this relative strength here. Boy! For one of the FAANG stocks, or Mag 7 stocks, this chart looks fantastic and has been doing extremely well versus the rest of the market.
What was nice to see, after it dropped sharply following earnings, it’s bounced back nicely and again, created that nice pattern of higher highs and higher lows and filled that gap just several days ago. It came back and checking back against that low from the day before – the day the earnings came out – the prior day’s activity.
And that is an important point right there. We’re gonna call that about $498 – 500. It’s where the stock closed the day of earnings release.
It’s in a really good spot over here. New all-time highs – not too far away – about $530 – about 5% away from where the current price is. So we could see this stock making a nice pull up here and continue this pattern of higher highs and higher lows and get right up there to all-time highs. And then make a move in July when earnings come out.
Take a look at Meta. It’s a good looking name and we think it’s got some more upside.
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