Meta Platforms (META) Shares Decline
Shares of the US tech giant Meta Platforms (META) hit a record high last week, climbing above $780 following the release of a strong earnings report:
→ Earnings per share (EPS) came in at $7.14, significantly exceeding the forecast of $5.88.
→ The company also outperformed expectations on key metrics related to advertising growth.
→ Additionally, the media has highlighted the growing importance of AI technology to Meta’s business.
However, shortly after reaching an all-time high, META shares began to show bearish momentum.
Technical Analysis of the META Chart
On the four-hour chart, the following signals are visible:
→ A bearish engulfing pattern formed on Thursday;
→ A bearish gap appeared at Friday’s market open, followed by a continuation of the downward move.
This represents a notable pullback from the historical peak — potentially indicating that the initial bullish reaction to the earnings report has faded. The share price decline suggests a correction from overbought territory, as confirmed by the RSI indicator.
The $740 level appears to be a key support zone — previously acting as major resistance before the breakout. Bulls could also find support from the median line and the lower boundary of the ascending channel that has been developing since mid-May.
Given this context, a scenario in which bulls attempt to resume the uptrend within the ascending channel cannot be ruled out, especially considering the company’s strong fundamentals and the presence of multiple technical support levels.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Shares of the US tech giant Meta Platforms (META) hit a record high last week, climbing above $780 following the release of a strong earnings report:
→ Earnings per share (EPS) came in at $7.14, significantly exceeding the forecast of $5.88.
→ The company also outperformed expectations on key metrics related to advertising growth.
→ Additionally, the media has highlighted the growing importance of AI technology to Meta’s business.
However, shortly after reaching an all-time high, META shares began to show bearish momentum.
Technical Analysis of the META Chart
On the four-hour chart, the following signals are visible:
→ A bearish engulfing pattern formed on Thursday;
→ A bearish gap appeared at Friday’s market open, followed by a continuation of the downward move.
This represents a notable pullback from the historical peak — potentially indicating that the initial bullish reaction to the earnings report has faded. The share price decline suggests a correction from overbought territory, as confirmed by the RSI indicator.
The $740 level appears to be a key support zone — previously acting as major resistance before the breakout. Bulls could also find support from the median line and the lower boundary of the ascending channel that has been developing since mid-May.
Given this context, a scenario in which bulls attempt to resume the uptrend within the ascending channel cannot be ruled out, especially considering the company’s strong fundamentals and the presence of multiple technical support levels.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.