Stock of the day: Meta Platforms
07 July 2023
In today's stock of the day, we are focusing on Meta Platforms, the company previously known as Facebook. The company has recently launched Threads, a new platform aimed to compete with Twitter. Although the first reactions have been mixed, particularly due to concerns over user data and control over content feeds, the situation on Meta's stock chart looks quite positive.
Since Wednesday, Meta's stock has seen a significant increase, particularly following the breakout of a key horizontal resistance at the $288 level, shown as a yellow line on the chart. This upward momentum, however, has been followed by a corrective phase, which could potentially be a healthy pullback to test the recently breached resistance as a new support. This is a typical price action seen in bullish markets.
Adding to this optimistic view, a dynamic uptrend line (green line on the chart) is currently acting in conjunction with the yellow horizontal support. These dual supports should ideally bolster the stock's price, providing a strong base for buyers. Therefore, as long as the price of Meta's stock remains above these two support levels, the outlook remains bullish.
However, if the price were to close below these two support levels, this could trigger a sell signal. At the moment, this scenario seems less likely, given the current market trends and the generally positive sentiment surrounding Meta.