Meta Stock Analysis: Key Levels to Watch Ahead of Earnings
Meta Platforms (META) has seen a notable rally of over 15% since our last analysis on October 3rd of last year. As of pre-market trading, Meta shares are priced at approximately $663.45, climbing into a critical resistance zone near the upper trendline of the channel visible on the weekly chart. With earnings approaching, this resistance level around $660 will play a pivotal role in determining the stock’s short-term direction.
Resistance and Potential Upside for Meta Stock
If Meta’s stock price holds above the $660 resistance level following the earnings report, there is a strong possibility of a breakout, potentially fueling a short-term rally toward $700 per share. Such a move would attract momentum traders and reinforce the bullish outlook for the stock.
Support Levels and Downside Risks
On the downside, weak earnings coupled with the current resistance could trigger a decline. The key support level to watch is $600, representing a potential 10% drop—a scenario that has previously occurred with Meta.
- A break below $600 may lead to a deeper sell-off, potentially pushing the stock to retest support near the $550 level along the lower trendline of the channel.
- For long-term investors, a dip to around $550 could present a favourable buying opportunity.
Technical Indicators Point to Optimism
Meta’s technical indicators have remained supportive of its recent price action:
- The MACD (Moving Average Convergence Divergence), which we highlighted as turning bullish in our October analysis, has continued to support prices, especially during any pullbacks in Q4 last year. As of now, the MACD has once again shifted bullish ahead of earnings.
- The RSI (Relative Strength Index) remains below overbought territory, indicating room for further upward momentum—a positive sign for traders and investors focused on short-term gains.
Earnings Season: Volatility on the Horizon
While the technical outlook for Meta is encouraging, this earnings season is expected to bring heightened volatility compared to last year. Investors should consider potential risks, especially as high valuations leave little room for disappointment. Earnings results will be the key driver in determining whether Meta breaks above resistance or retreats to support levels.
Conclusion
Meta’s stock is at a critical juncture heading into earnings, with resistance at $660 and support levels at $600 and $550 playing significant roles in shaping its near-term trajectory. A breakout above resistance could drive prices toward $700, while weaker-than-expected earnings might lead to a deeper correction. Despite the risks, technical indicators remain supportive, offering an optimistic backdrop for investors.
Stay prepared for volatility as Meta’s earnings report could be the deciding factor in the stock’s next major move.
