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Meta Platforms

April 21, 2024
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Time to revisit Meta.

Meta platforms is down ~55% from all time high and many seem to have blacklisted the stock, but do you know what they say???  

Buy Low and Sell High"

Often times retail investors tend to do the opposite. When there Is blood in the markets, investors forecast more downside and vice versa. As a result, they buy noise (high) and sell lows. Meta platforms is currently trading above a demand zone(marked in red) of $144/share. The rejection at the zone shows the significance and sensitivity of the level, and can now be used as a low' or buy-zone. Although the stock is still trading below the 200 moving average, the chart looks over-stretched and we should expect a squeeze to the upside soon. 

As shown in the pictures above, the market created a huge gap from $316 to $247/share. When analysing the history of the stock, it has never (not even once) failed to close any market gap on larger timeframes . This gives us an idea of where the stock is going to in the long run. My first target on the stock is at $247, second target is $316/share and will update these targets once they're reached. This will be a whooping return of ~80% from its current price of $175 to the second target.

This sounds good, right?

Remember, There is risk involved on every opportunity. Growth stocks have been notorious in the past few months, it is important to approach them with caution. Although the market will eventually close the gap, but the stock can go past below the current demand zone and test the demand zone at $123/share, which will be a drawback of ~20% from its current price. THIS IS THE RISK. This recommendation is strictly for INVESTORS and not traders.

 

Disclaimer: This is not financial advise, but rather an opinion from a technical analysis perspective. 


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