Chart of the Day: Keep Your Eyes on Meta

There is no question, the biggest and brightest stars of the stock market are retaining the dominant share of the capital. Money flows to the biggest and perceived safest names like Bullpen name Meta Platforms META.

The stock has been a steady mover to the upside after a shocking earnings report back in April. But, as many investors have seen with other mega-cap names, the drops are simply pullbacks to be bought. Such is the case with Meta, which is now in striking distance of those old highs from the spring.

We would certainly like to add Meta to the portfolio at some point but it makes more sense to wait for a pullback to enter. However, as we often say, the best trends hardly ever give you a chance to enter. There might be a small window of opportunity but it closes fast.

Over the past few weeks, we have seen Meta dipping below the $500 level on a few occasions but the buyers snap it right up. A sharp bid at a defined level like this one is a good clue where dips can be bought for a low-risk entry point.

Stochastics (momentum) in pane 4 is starting to turn upward. That is bullish, and the chop index (pane 3) is turning down, which means a trend may be starting (enough with the chop!).

The candles in the top pane are still either blue (strong bullish) or teal (cautiously bullish). Those changed in early June and continue to reflect the sentiment, which could help the stock ride higher into earnings later this month. But if we see a meaningful retracement in this Bullpen position, it may give us reason to revisit it.

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At the time of publication, TheStreet Pro Portfolio had no positions in any securities mentioned.