Chart of the Day: Meta Looks Ready For Prime Time
The stock has fallen sharply but is now building a solid base, according to the charts.
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We became concerned with Meta Platforms META recently after the stock came down sharply and corrected nearly 20%. By definition, that had put Meta into its own bear market, but as we know those conditions are not long-lasting if the rest of the stock market is not in the same bear market. Remember, this is a condition and not a signal, hence a bear market for Meta last week (when it occurred) was no reason to panic.
But, the stock did manage to rally off the 200-day moving average (top pane in the chart above) last week, refusing to close below it. That shows big money is there, supporting the stock and not letting it push below this key level. What we would like to see now is a bit of basing, sideways action for about a month or so.
Not breaking the 200-day moving average around the $580-$575 level, while likely stymied at the 100-day moving average level around $622. That would frustrate everyone, but build the base that could be the launch point for Meta in the next timeframe.
We are bullish this name and believe it is the best in class. We rate it a "Two" in TheStreetPro Portfolio, stockpile on pullbacks.
The Pro Portfolio is long META.
