Chart of the Day: Meta Bulls Should Make a Stand at This 'Springboard' Spot
The stock has corrected on mild volume, scaring out some short-term holders.
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In typical fashion Meta Platforms META has retreated to a familiar spot on the chart, the 14-period McGinley Dynamic. This support zone has proven a nice bounce point in the past, most recently July just before earnings were released. That move up was powerful as the McGinley provided a nice springboard to new all-time highs.
In conjunction with that "touch" of this support area we also found in July a nice surge up in money flow (bottom pane). Chaikin MF has also recently pulled up nicely after a mild distribution, with higher highs and higher lows. That combination (McGinley touch and money flow acceleration) might create some momentum and excitement for the bulls here.
No question the other indicators are still bearish, but looking to turn upward, it might take 3-5 days of positive action in a row to get there. The candle is amber color, which is neutral. There are no specific catalysts on the horizon here for Meta to move up, so maybe a quiet move higher is preferred.
We like Meta in TheStreet Pro Portfolio and rate it a Two, or "stockpile on pullbacks."
At the time of publication, TheStreet Pro Portfolio was long META.
