Meta Platforms (META) Shares Dip Below $550
On 7 October, we analysed the Meta Platforms (META) price chart and highlighted:
The formation of a long-term upward channel (marked in blue).
The key drivers supporting bullish sentiment.
We also emphasised the psychological significance of the $600 level.
Since then, the price has approached this level four times, only to be met with resistance each time (indicated by red arrows).
Yesterday, for the first time since mid-September, METAs price fell below $550, suggesting that the stock underperformed the broader market during October and November.
Whats Next?
Technical analysis of the META price chart reveals that the stock is trading within a range defined by:
Resistance at $600, which has consistently proven robust.
Support at $545, a level that previously acted as resistance (marked by arrows).
While the channel median initially acted as a magnet for the price (highlighted with an oval), November patterns suggest the median now "repels" the price downward, a bearish indicator.
Bullish momentum might regain strength if the price approaches the lower boundary of the blue channel. However, the sustainability of demand at these levels and whether it can drive a successful breakout above $600 remains uncertain.
Analysts remain optimistic. According to a TipRanks survey:
40 out of 44 analysts recommend buying META shares.
The average 12-month price target for META is $662.
Read more: https://fxopen.com/blog/en/oa-meta-platforms-meta-shares-dip-below-550/
Text source: Forex Trading Blog
