July 11 Chart of the Day - Meta
Meta, (ticker META) the company that grew up on the heals of Facebook and Instagram, continues to make waves in the market place with its stock price and most recently its direct Twitter competitor, Threads.
Threads surpassed 100 million new user sign ups during its first week after announcing its new social media platform. With its built in Instagram audience (required for new Threads account) the user count is likely to continue its meteoric rise.
But can the same be anticipated for Meta's stock price?
Left for dead on the side of the road by investors last fall when price bottomed out at $88.09, price has more than tripled in the last 8 months to its current trading price of $297 and change.
How long the stock and keep up this torrid pace is anyones guess. Investors have been giddy and thinking about new all time highs above $384.33.
But from a price action technical analysis perspective there may be some bumps in the road ahead between $304 and $320.
When price approaches potential decision zones like this there are a few things that could happen.
- Price could reach this area and get rejected
- Price could "pause" and consolidate before making a directional decision
- Price could act as if the overhead resistance didn't even exist and chug right through it. Often when this occurs, price tends to backtest the levels that previously acted as resistance and now are transformed into support.
- Price could never reach this area...
Anyone who professes to "know ahead of time" or predict with certainty simply is fooling themselves and trying to fool you.
So what's next?
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
Take a look at the charts and let us know what you think.
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