Watch These Meta Price Levels as Stock Pops on Earnings Beat as AI Spending Pays Off

Shares successful Meta Platforms (META) jumped much than 7% successful extended trading connected Wednesday aft nan societal media giant's second-quarter net and sales topped Wall Street’s estimates, giving investors assurance that nan company’s important finance successful artificial intelligence (AI) infrastructure is reaping benefits.

The tech behemoth's banal value has fluctuated importantly aft caller quarterly reports. In February, nan shares surged much than 20% connected Q4 results amid nan declaration of nan company’s first ever dividend, while ray second-quarter gross guidance sparked a driblet of complete 10% pursuing Q1 net successful April. 

Below, we return a person look astatine Meta’s floor plan and usage technical analysis to place cardinal levels to watch retired for.

Shares Remain Rangebound

Since nan stock’s earnings-driven breakaway gap successful early February, nan value has remained successful a trading range, fluctuating respective times supra and beneath nan 50-day moving mean (MA), indicating a deficiency of clear direction.

A move to a caller all-time precocious (ATH) supra nan rangebound play successful July was short lived, pinch nan shares retracing to nan little information of nan scope starring into nan societal media giant’s quarterly results.

Monitor These Two Key Price Levels Post Earnings

Looking ahead, investors should show 2 cardinal levels that nan banal could trial amid a post-earnings pop.

The first sits astir $490, a location connected nan floor plan adjacent nan 50-day MA wherever sellers whitethorn look to book profits adjacent a horizontal line that links respective insignificant peaks and troughs that person formed passim nan rangebound period. Although after-hours trading indicates an unfastened higher than this level, it’s worthy watching if nan shares tin clasp supra this area done Thursday’s close.

Follow-through buying could spot a retest of $530, wherever nan value would apt brushwood important overhead resistance astir nan April and July swing highs, Until nan value decisively breaks retired supra these 2 peaks, nan later which marks nan stock’s grounds high, there’s nan ongoing anticipation of a double top.

Breakout Target

If nan Meta shares spell connected to break retired supra nan trading range, investors tin usage nan measuring principle, sometimes called a measured move, to task a imaginable value target.

To do this, we cipher nan region betwixt nan range’s 2 trendlines successful points and adhd that magnitude to its apical trendline. In this case, we adhd $110 to $530, which forecasts a value target of $640.

Meta shares roseate 7.2% to $508.87 successful after-hours trading Wednesday.

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