Is the meta invasion or falling?

Meta Platforms, Inc. (META) chart has completed the round trip from $ 740 in February to $ 480 in April. In the last few weeks, Meta withdrew from the highest high -level re -examination and wondered what would happen next to investors.

Is this the beginning of the new fall of Meta? Or is it a simple full back before the new up trend step is to promote the meta at the highest record? To analyze this, we will look at two potential scenarios, including a double top pattern and a cup and handle pattern, and shares approaches and approaches that can help to determine which path in August.

The double top scenario basically means that the re -test of the previous July is the end of the recent rise. The double top pattern is literally when the main resistance level is set and re -tested. If you are willing to have a shortage of buyers, it is exhausted, and there is no place to go.

On the 21st, the index moving average is currently working on META, but the break of less than 50 days will be confirmed by the right scenario. If the smoothing mechanism is not maintained, the price measure does not mean the start of the disadvantages and the actual distribution stage.

But what if the meta resumes back and resumes the upward step, what if the meta leads to a new new best? This creates the bottom of the cup and handle pattern that is confirmed, and a simple fullback will be made. The core of this pattern is the “rim” of the cup and the meta for $ 740.

Given that the full back meta has been demonstrated until July, I will say that rest of more than $ 740 will be basically optimistic cups and handle patterns. It suggests much more potential for meta because the stock literally enters the unknown territory.

How can you decide which scenarios that are more likely to play a scenario? It is a place to integrate more technical indicators into discussions by further verifying and verifying investment papers.

To review, I think that more than $ 740 rest will check the optimistic cups and handle patterns. In addition, the movement of the 50 -day moving average and the rest of less than $ 680, which shows the movement of the JUNE Swing below, will be basically the upper pattern by default.

You can also use the relative strength index (RSI) to determine whether the meta is in the strong trend stage. In the bull phase, the buyer generally “buy” and maintains the momentum quite constructively, so the RSI is less than 40. Therefore, if the price collapses and the RSI does not maintain its important level 40, you can guarantee the weak prospects.

Finally, you can use volume -based indicators to assess whether the price is supported by a strong volume reading value. This includes accumulation/distribution lines that track the trend of daily volume reading over time. As the A/D line is lower, we can see that the highest price in July occurred. When the A/D line is broken below the lowest level in June and July, when it is marked with a red line, it represents the weakening of the meta.

Technical analysis is not about future predictions, but to determine the most likely scenarios based on the analysis of trend, momentum and quantity. This discussion is a good idea to use the best practices of technical analysis to easily determine and track META prospects.

RR#6,
Dave

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David Keller, CMT
President and senior strategist
Sierra Alpha Research LLC
Marketmisbehavior.com
https://www.youtube.com/c/marketmisbehavior

disclaimer: This blog is used only for educational purposes and should not be interpreted as fiscal advice. You should not use ideas and strategies without evaluating your personal and financial situations first or consulting financial experts.

The author does not have a position in the securities mentioned at the time of publication. All the opinions expressed here are not only the author’s opinion, but they do not represent the views or opinions of others or organizations in any way.

Author Information:

David is the president and chief strategist of Sierra Alpha Research LLC, and uses activity finance and technical analysis to help active investors make better decisions. He is the former president of the CMT Association. Learn more