Chart of the Day: Is This Yet Another Opportunity to Buy This Holding?
Pullbacks have been a great place to add shares in the past — and this current one is probably no different.
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Just go back and look at the historical performance of Meta Platforms META, and you'll soon discover a recurring pattern. Each sizable dip becomes a great buying opportunity. Just about every single dip over the past 10 years or so has been ideal for buying shares, though it is no easy task, holding your nose and dipping in.
This most recent pullback from highs in late October looks constructive and perhaps complete. No question the chart is bearish. The GoNoGo composite of indicators shows purple or pink candles, which is bearish. The MACD (moving average convergence/divergence) is on a sell signal, the parabolic SAR (stop and reverse) is on a sell signal since late October (dots in the top pane), and money flow is bearish.
So the conclusion is to avoid the stock? Not at all. In fact, the counterintuitive argument is to add when the stock looks weak, and therein lies the rub, because whenever Meta looks vulnerable is the time to buy the stock with both hands.
We rate Meta a Two in TheStreet Pro Portfolio, stockpile on pullbacks. This latest 8-9% move is one for the taking as the stock lands at some very solid support levels.
At the time of publication, TheStreet Pro Portfolio is long META.
