Chart of the Day: Meta Will Rise Again
This big Magnificent 7 name has been beaten down since earnings but buyers are starting to show up.
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What a ride this Meta Platforms (META) has been on lately. The stock was drilled after posting strong earnings and guidance but was met with resistance after it raised spending. Sometimes investors want profits and other times they are fine when the company spends money like a drunken sailor. This time around the stock was punished, with a nasty 21% drop in just days. But as we can glean from the chart that drop may have just finished.
Notice the strong buy signal coming from the Moving Average Convergence Divergence, in the second pane. This is one of the most reliable signals in the technical universe. Parabolic stop and reverse, in the first pane, has just flipped to a buy signal, so there is some support at the recent lows. Money flow, which is seen at the bottom of the chart, is negative but improving, while the Average Directional Index is bending lower, which means the trend (which is down) is starting to weaken.
No question with the candles in pink/purple, as seen at the top of the chart, that the trend is down. That's according to the GoNoGo composite of indicators. It will take some time to turn these bullish, but after a 21% fall from the recent highs (not all-time highs), we can be patient.
We like Meta Platforms in TheStreet Pro Portfolio and rate it a one, buy at anytime.
The Pro Portfolio is long META.
