- Meta traded unusually quietly despite broader volatility, with recent weakness tied to an earnings miss and a death cross.
- A developing rebound now challenges major resistance zones, including the 200-day EMA and the $650 area, while long-term targets remain higher.
Meta, or Facebook, is very quiet during the trading session on Wednesday, which is interesting considering that the market has been so volatile. That being said, it's interesting that the market continues to see a lot of choppiness in this market, as the recent death cross that we had seen in Metta supposedly should send the markets much lower. The latest earnings report that came out on October 29th was a miss and traders have punished Metta since then. That being said, it looks like we are trying to rally over the last couple of days, and it's worth noting that the market now faces the specter of the 200-day EMA.
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Meta has formed a $3 billion deal with Nebius, a Dutch data center operator, to boost its AI infrastructure. So that helps its projected growth. But at the same time, we have a situation where the market is likely to look at not only the 200-day EMA, but the general $650 level as difficult to get above.
Key Resistance and Long-Term Targets
If we can break above the 200-day EMA, then it's likely that Meta will go looking to fill the gap from the earnings call, which sends this market back to the $750 level. Given enough time, I do think that happens. But the question is, will you get a little bit of a pullback between now and then to take advantage of the most obvious support level for me is the $580 level, which of course we are nowhere near. So, with all of that being said, I'm cautiously optimistic, but I also recognize that you might have to scale into a position.
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