Meta’s stock has been under pressure mainly because the company is spending heavily on AI infrastructure and long term projects, raising concerns about shrinking margins and uncertain returns. Recent earnings included strong revenue but were overshadowed by big cost guidance and a large tax charge, which shook investor confidence. On top of this, Meta faces regulatory scrutiny, competitive pressure, and slowing ad market dynamics, all of which add risk to its core business. Together, these factors have led to volatile trading and a cautious outlook from investors.
This cautious outlook from investors aligns with the SIA technical reading where the shares of META have moved into the red unfavored zone of the SIA S&P 100 Index Report where the stock now sits in position #85 after a swift decline in November. This position alerts SIA practitioners to become defensive with this holding. The attached SIA matrix position chart shows the period when META last dipped decisively into this unfavored zone and the share price subsequently dropped approximately 65%.
The weekly candlestick chart shows that, during the period around 2021, the moving average crossovers may have provided additional advance notice. The 21-week exponential moving average moved below the 50-week moving average and then below the 200-week moving average. As the selloff ended, the same 21-week exponential moving average offered a positive technical signal as it moved back above the 50-week moving average. The current reading shows this 21-week exponential moving average declining quickly and approaching the 50-week moving average, which, if history is a guide, may signal further deterioration in the technical attributes of META shares.
To outline support and resistance levels we next consider the SIA point and figure chart, which is scaled at 2% for an investment grade view of price action combined with relative strength readings from the SIA matrix overlay tool that displays green, yellow, and red. The chart shows the run from the approximate $200 level up to $700 before a relative strength head fake in April and May that briefly moved META into the unfavored zone before it returned to the favored green zone for most of 2025.
More recently the reading has again turned negative and share prices have become volatile. On the upside the psychological whole number level of $801.87 stands as significant resistance, especially against a backdrop of low relative strength and a broad market experiencing rising volatility where advisors appear to be highly reactive. In the near term the level of $684.39 is highlighted as another resistance level based on half of the prior column of O's. Support begins at the 3-box reversal level of $584.12 which would place the bears back in control. The next support level may not appear until $479.18 and the level of $377.83 is also noted as a deeper area of support under challenging market conditions. META Platforms now carries a negative SMAX reading of 3 out of 10 which reflects weak relative strength against a basket of alternative asset classes.
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