META Stock in Limbaugh: What You Need to Know Before the Next Big Price Move | Don’t ignore this chart!

Meta Platforms Inc. (META), the social media giant formerly known as Facebook, has been maintaining tight integration at the top of its product family for a little over a month. Trading volume for the stock declined significantly after rising 23% in February following its fourth-quarter results. Now market participants are looking for catalysts that can drive stock movements.

Analyst price forecasts show a wide range of changes

If you haven’t decided yet whether you’re bullish or bearish on the meta, you’re not alone. That’s because the blog shows a wide range of analyst price predictions for the next 12 months. The highest price target is $610, the average consensus is $489, and the lowest price target averages around $272.

However, the consensus rating is tilted from ‘Buy’ to ‘Strong Buy’.

What’s new in the meta? New AI release

The optimistic outlook is driven by Meta AI, a new AI app that aims to increase user engagement across WhatsApp, Instagram, Facebook and Messenger by offering advanced AI features such as animation and image creation. Meta AI is expected to see increased advertising revenue through its partnerships with Alphabet (GOOGL) and Microsoft (MSFT), which could lead analysts to increase their stock price targets.

A macro look at the meta

Chart 1. Meta’s weekly chart. Meta’s upward trend, which is hovering around all-time highs, appears to be trending in a parabolic direction, leaving investors wondering if such a trajectory is sustainable. The 13-week SMA represents one quarter.Chart source: StockCharts.com. For educational purposes.

Striving to recover from its 2022 lows, Meta began outperforming the S&P 500 this year and currently outperforms the broader market by 37%.

But before even matching the broader market. Meta’s Technology as Shown by StockCharts Technology Rankings (SCTR) scores—have been noticeably stronger since late 2022 (scores above the 90s).

The 13-week simple moving average, which represents one quarter, appears to consistently indicate support and resistance. When you look at meta using the weekly chart, you’ll want to look at that line.

A short-term view of Meta’s price movements

The consensus among analysts is largely optimistic, with the launch of Meta AI prompting Wall Street to raise its price targets, some as high as $610. But now I see a rectangular pattern. And technically, the price of Meta could go in either direction, at least in the short term (see chart below).

Chart 2. Meta daily chart. Drive, or lack of drive, speaks volumes. Investors will probably be awaiting META’s next earnings report, scheduled for April 24th.Chart source: StockCharts.com. For educational purposes.

Note the rectangles: To take action on a breakout, set a price alert at $481 near the bottom and $531 near the top of the formation.

Keep momentum in mind: Fundamental forecasts may be optimistic, but Chaikin Money Flow (CMF) There isn’t that much activity, bullish or bearish, right now, but it would tell you that selling pressure is much greater right now. And why not?

Plan to monetize: Meta’s last earnings report pushed the stock to all-time highs. The next import day is April 24th. As we get closer to Meta’s earnings date, we’ll likely see more activity. So pay close attention to this.

Support level: If Meta’s earnings are decent, but not bad enough to invalidate the long-term bullish thesis (AI launch), or note the wide range of support expected as the price is currently in a rectangular shape and 50-day simple moving average (technically downside) Ichimoku Cloud. If the optimistic underlying theory holds true, buyers are likely to jump into the cloud.

conclusion

Meta’s long-term outlook is optimistic, much of which is driven by optimistic expectations surrounding its AI launch, Meta AI. Nonetheless, a correction appears likely, although the chart construction indicates it could go either way. Watch out for catalysts that could impact the stock’s trajectory as it approaches its next earnings date. And even if Meta is trending lower, keep an eye on those clouds if the optimistic fundamental outlook persists.

disclaimer: This blog is for educational purposes only and should not be construed as financial advice. You should not use any of our ideas and strategies without first evaluating your personal and financial situation or consulting a financial professional.