Chart of the Day: Meta’s Day of Reckoning Is Here

Whenever Meta Platforms (META) reports earnings the anticipation is very high for a beat and raise. And whenever the company flexes its muscle to announce more spending, whether it is AI or some other initiative, we often seen investors/traders shun the stock. This happened in April; Meta shares had just bounced back from a spectacular 30% plunge but were rejected at a key technical level (200-day moving average).

Since then, the stock has just been floundering. A couple of sharp moves up last month were sold immediately. While the slight downtrend channel in June was turned around sharply, there was not much follow-through to the upside to keep a new uptrend intact. Unfortunately, the rally consumed a lot of energy and there was heavy short-covering. Once that finished up, the sellers were active (selling the stock).

In any event, the technicals are not bullish here any longer.

Money flow is rolling down and the MACD is on a sell signal again. The RSI is tumbling as well, and recently the parabolic SAR (stop and reverse) shifted to a bearish signal. Also, candles quickly moved to amber color (neutral); I don’t expect to that to continue (break out either direction).

There is strong support around $520, but the expected move is huge, about $51, which is roughly 9%, much higher than normal.

We like Meta in TheStreet Pro Portfolio and rate it a One, or “buy at anytime.”

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At the time of publication, TheStreet Pro Portfolio was long META.