Technical Analysis Signals Meta Platforms (META) Downside
Meta Platforms (META) is reaching new all-time highs as its earnings report approaches. Despite a market cap exceeding $1.6 trillion and enthusiastic analyst support, technical indicators suggest a cautious approach.
Technical Analysis Raises Concerns
The stock recently touched a long-standing trend line dating back to 2020 at its all-time high of $652.00. Historically, this trend line has acted as a resistance level, leading to price rejections. Logic and historical precedent suggest another rejection may be imminent.
Adding to the bearish outlook is a negative divergence on both the weekly and daily RSI, indicating potential institutional selling. This is further corroborated by Mark Zuckerberg's significant stock sales over the past year.
Earnings Expectations and Potential Support
Meta Platforms will release its earnings on January 29th after the market closes. Analysts anticipate earnings of $6.90 per share on revenue of $48.98 billion, with a whisper number predicting a $0.15 per share beat (already priced in).
Should significant selling occur, major support is expected at $580.
Key Takeaways:
- META is at all-time highs but faces a historical resistance trend line.
- Negative RSI divergence suggests potential institutional selling.
- Zuckerberg's stock sales add to the bearish sentiment.
- Earnings are expected on January 29th, with a potential whisper number beat already factored in.
- Major support is identified at $580.
