The social media giant spent 2022 stuck deep in the red zone of the SIA S&P 100 Index Report. Since November, however, the shares have been rising back up the rankings and yesterday it returned to the Green Favored Zone for the first time since October of 2021. Meta, which has climbed 18 positions in the last month, moved up another 2 spots yesterday, to 23rd place.
A big selloff on volume back in November that took the shares briefly below $100.00 appears to have been the selling climax for Meta Platforms (META). Since that final flush, the shares have been under renewed accumulation, establishing a recovery trend of higher lows, snapping multiple downtrend lines, retaking the 50 and 200-day moving averages (which have completed a bullish Golden Cross), and staging several breakaway gaps upward.
Currently, the shares are consolidating recent gains in the $170.00 to $200.00 range with initial support moving up toward $185.00 recently. A breakout close above the $200.00 round number would signal the start of a new up-leg with next potential resistance near $230.00 based on a measured move, followed by the $250.00 round number, which aligns with a previous support level and the bottom of an old gap.
Although Meta Platforms (META) shares bottomed out in November, accumulation has been underway in earnest since January with a large High Pole rally, a small correction and a new Double Top breakout combining into a Bullish Catapult pattern that has carried the shares to their highest level since May.
Initial upside resistance appears in the $205.80 to $209.90 area where previous column highs and a 45-degree downtrend line converge, followed by the $245.95 to $250.85 zone where previous column highs and lows, the $250.00 round number, and a horizontal count cluster. Initial support appears near $179.15 based on a 3-box reversal.
With a bullish SMAX score of 9, META is exhibiting strength against the asset classes.
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