Watch These Meta Platforms Price Levels After Stock's Record Close

Shares successful Facebook and Instagram genitor Meta Platforms (META) stay successful attraction this week aft soaring 5.9% to a caller grounds adjacent connected Friday. The banal was buoyed by caller commentary from analysts astatine Bernstein who pointed retired that nan company’s important finance successful artificial intelligence (AI) is starting to construe into gross maturation done users spending much clip connected nan societal media giant’s apps.

Below, we return a person look Meta’s play floor plan and constituent retired important technical levels to watch retired for.

Breakout from Pennant Pattern

Since bottoming retired successful October past year, Meta shares person trended sharply higher, pinch gains accelerating aft nan 50-week moving mean (MA) crossed supra nan 200-week MA successful precocious November to shape a golden cross, a floor plan awesome that typically predicts rising prices. More recently, nan banal collapsed retired from a pennant pattern connected Friday that suggests a continuation of nan longer-term uptrend.

However, investors should still workout a grade of be aware arsenic respective technical indicators constituent to slowing value momentum. Firstly, stock turnover has trended little since early February. Secondly, arsenic nan banal made a higher precocious past week, nan relative spot scale (RSI) made a shallower higher to create a bearish divergence.

Measuring Principle to Project Upside Price Target

If nan banal continues to move to nan upside, we tin task a imaginable price target by utilizing nan measuring principle. To do this, we cipher nan region of nan astir caller limb higher successful points preceding nan pennant and use that magnitude to nan pattern's apical trendline. 

In this case, we adhd $257 to $510 that projects a value target of $767, which sits astir 42% supra Friday’s closing price. This provides america pinch a wide area connected nan floor plan wherever Meta’s shares whitethorn tally into overhead resistance, peculiarly if different indicators are simultaneously pointing to overbought conditions astatine nan aforesaid time.

Monitor These Levels During Periods of Profit Taking

During retracements, investors should support an oculus connected 2 cardinal levels connected nan floor plan that whitethorn pull buying interest.

The first level to watch sits astir $384, an area apt to find support from nan stock’s anterior August 2021 precocious that aligns intimately pinch nan rising 50-week MA.

A adjacent beneath this level could spot nan shares autumn to astir $300, wherever they would perchance pull buyers adjacent nan 200-week MA and a multi-year horizontal line linking a scope of price action betwixt August 2020 and October past year.

Meta shares were up 0.4% astatine $542.15 successful premarket trading astir 2 hours earlier Monday's opening bell.

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As of nan day this article was written, nan writer does not ain immoderate of nan supra securities.