Home Stock Markets If Meta Stock Breaks This Support Level, Look Out Below

If Meta Stock Breaks This Support Level, Look Out Below

by WOOWinvest
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If Meta Stock Breaks This Support Level, Look Out Below

Yuan (META) – Get Meta Platforms Inc. Reports The company reported a revenue and profit miss after the market closed Wednesday, and the company reacted poorly.

It’s been a busy few days, full of mixed signals and, frankly, a couple of positives.

First, stocks rose early Wednesday, as did Microsoft (MSFT) – Get Microsoft Corporation Reportsletter (GOOGL) – Get the Alphabet Inc. report (GOOG) – Get Alphabet Inc. Report and Shopify (SHOP) – Get Shopify Inc. Class A Subsidiary Reportalthough all three companies missed earnings and revenue estimates.

The rebound came ahead of the Fed’s decision to raise rates by 0.75 percentage points and accelerated after the Fed’s announcement.

It’s quite optimistic to see the stock market rally on bad news. If this were April or May, these reports and the Fed rate hike would bury the S&P.

Meta investors may not be surprised by its missteps in sales and profits.That’s because Big Tech has been falling short, after Snap (SNAP) – Get Snap Inc. Class A Report Reactions after last week’s dire earnings report.

Unlike Microsoft, Alphabet and Shopify, however, Meta stock didn’t rise on the day. Shares in Facebook’s parent company are now down about 5%, having fallen as much as 8.7% earlier in the session.

Weekly chart of Meta stock.

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Here’s the thing, though: Meta stock rose more than 6.5% Wednesday ahead of the earnings report. With today’s decline, we are still above Tuesday’s close and almost back to Wednesday’s open. More or less, we’re just seeing some choppy, choppy trades around the lower end of the range.

Meta stock is holding key support in the $155 area. If the stock can bounce back without earnings, the bulls may have something important to work out.

On the weekly chart, I see the importance of $155, which comes into focus once the stock’s wedge pattern breaks below.

If $155 ultimately fails to act as support, we are likely to see a drop to the March 2020 low near $137.

On the upside, the 10-week moving average has clearly been active resistance. The measure has been weighing on shares since January and was a significant trend killer in the second quarter.

If the stock can clear this indicator and rise to $175, the stock could form a more constructive uptrend.

This could eventually put $200 into play, although there is currently significant overhead resistance in the $225-$235 area.

But when Meta stock gets there — assuming it does get there — measures in this area may change at that point.

There are some potential positives for Meta stock. But it all started with holding $155 in stock.

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