- Meta has fallen over the last couple of days, but it looks as if we are turning around to show signs of life.
- The market has been very bullish until recently, but all things being equal, the market certainly looks as if it has a lot of support underneath, especially near the $745 level.
- The $745 level is an area that previously had been a swing high, so does make a certain amount of sense that we would see a lot of support in that general vicinity.
Technical Analysis
The technical analysis for this market is obviously very bullish, and the fact that we formed a bit of a hammer during the trading session on Monday does suggest that we are in fact looking for some type of reason to bounce, and I would not surprise me at all, considering that the stock is held by a lot of institutions, and of course passive investing vehicles. With this being the case, the market is likely to continue to see Meta rally, but we may have a little bit of work to do in order to stabilize things.
Underneath the $745 level, there is a massive amount of support not only due to the gap, and then of course the 50 Day EMA is rising there as well and getting ready to meet the $745 level. The $745 level is an area that I think a lot of people will be paying close attention to, just as to the upside, we have the $800 level offering a bit of a ceiling, and if we can break above then obviously, we will just continue the overall uptrend that has been so prevalent in this market.
With the mix of passive investing and of course the whole “artificial intelligence trade”, then I think you’ve got a situation where traders continue to see a lot of momentum into this market, and I think Meta will continue to be one of the leaders for the market going forward. I have no interest in trying to short this stock.
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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.
