Pro Charts: Stocks & ETFs

META Into Resistance, High Probability Of Correction

Updated: Apr 22, 2024 | Published: Apr 13, 2024
Verified Investing
By Verified Investing
META Into Resistance, High Probability Of Correction

Meta Platforms (META) has rallied 500% from its November 2022 lows. For a trillion-dollar stock this is a rally for the ages. However, price could be setting up for a steep decline. The chart has slammed into a trend line going back to 2018 and connecting through the highs of 2021. This likely creates a scenario where a retrace of the move will occur.

A likely retrace target would be the gap fill from the last earnings release. On that earnings release, Meta began a run that took it from $400 to $530. Filling the gap at $400 would be the logical target price for major support.

The biggest culprit of a drop would be risk-off in the stock market and a slowing economy where ad-spend would begin to shrink. Meta's business depends on ads for its revenue and profit.