- Meta, or the company formerly known as Facebook, has seen a little bit of positivity during the trading session on Monday, but it’s also worth noting that we have given back some of the gains to show signs of hesitation.
- At this point, the market is likely to continue to try to reach the $800 level, but that might be a bit of a fight based on what we have seen as of late.
- Furthermore, I would be a bit concerned about any “knock on effect” coming from the NASDAQ 100, as it does look like it is getting a little bit “tired” in this general vicinity.
General Uptrend
As a general rule, Meta will follow the overall NASDAQ 100, and vice versa. After all, the NASDAQ 100 is really only about 7 stocks, and Meta just happens to be one of them. They both look similar, which is typically the case as well. There is an uptrend overall in this market, and of course we have an uptrend line at this point offering support, right along with the 50 Day EMA which sits at the $733.70 level. The $775 level above is short term resistance, but I don’t really see that it matters over the longer term. The latest earnings call was very strong for Meta, but if the overall market starts to soften, it’s going to cause problems for the stock, at least for the short term.
Keep in mind that the entire artificial intelligence sector seems to be struggling a bit at the moment, which makes a certain amount of sense because there is a strong and very real argument to be made that artificial intelligence may have been a little bit of an overblown theme in the short term. We’ve seen this before, any type something revolutionary comes out, there is a massive shot higher, followed by the realization that the true benefit may not be felt for a couple of years, which causes the market to sell off, base, and then turned around and rally over the longer term. That’s how most of the Internet stocks behaved years ago.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
