Meta Forecast: Bounces After Initial Drop

• The market for Meta has been a study in turnaround mechanics, as initially during the trading session on Friday, we saw Meta drop, but then it turned around to show signs of life.
• At this point, it looks like the market is probably trying to get back to the top of the weekly action that we've seen with a move towards the $766 level being possible.

The 50 day EMA at the $736 region offers a little bit of support and it is worth noting that the support level has held a couple of times in the past. All things being equal, it's possible that we could see Meta go look into the $800 level, but really at this point, I think it is a little bit difficult to hang on to stocks without a little bit of protection. So, I think covered calls might be a way to go for some people. The ex-dividend date is September 22, so we are 10 calendar days from there. And it looks as if the market might try to get to that level. If we were to break down below the $720 level, that would be ugly, and it could send Meta down to the $700 level.

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That's not necessarily something that I'm looking to happen, but it is the other side of the coin, if you will, that you have to pay attention to. With this being the case and Meta rising about a quarter of a percent for the day, looks like although it's a positive day, we are seeing more of the same noise that we had seen in Meta previously, especially this week. The Nasdaq 100, of course, has rallied. Most indices have rallied only to turn around and fall and then bounce a bit later in the day. So, it just gives you an idea of how noisy things are. The interest rate decision and the press conference on Thursday of next week will come into focus, and that will obviously have an influence on the stock market on the whole, so keep an eye on that. But as things stand right now, it's steady as she goes. It looks like this thing wants to grind higher.

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