Overview:
Meta Platforms, Inc. (NASDAQ: META) continues to be a dominant player in the tech space, fueled by its advancements in AI and the ongoing pivot to the metaverse. This setup takes into account both macroeconomic conditions and technical factors to identify a high-probability trade.
Technical Analysis:
Fibonacci Levels:
The price has retraced to the 61.8% ($583.19) and 65% ($580.34) Fibonacci levels, forming a potential buy zone.
These levels have historically acted as strong support during Meta’s corrections.
Elliott Wave Structure:
Wave (IV) correction appears to be completing near the 0.618 retracement, aligning with the broader uptrend.
Expecting a bounce in Wave (V) toward new highs.
Key Levels:
– Entry Zone: $583.19 – $580.34 (marked by the shaded box).
– Stop-Loss: $576.33 (below key support to minimize risk).
– Target 1: $606.11 – Alignment with prior resistance.
– Target 2: $627.35 – Extension toward the next key level.
Macro Overview:
Tech Resilience in Tight Liquidity Conditions:
Despite rising interest rates, META has outperformed the NASDAQ 100 due to its AI-driven growth initiatives and continued monetization improvements in Instagram and WhatsApp.
Ad Recovery:
Signs of recovery in digital advertising could provide further tailwinds for META, especially as businesses increase ad spending during Q4.
AI and Metaverse Bets:
Meta’s Reality Labs losses have stabilized, and investors are showing increased confidence in their long-term strategy as AI integration becomes evident across their platforms.
Trade Plan:
Entry Zone: Wait for the price to approach $583.19–$580.34 to enter long positions.
Risk-Reward: This setup offers a strong risk-reward ratio of 3:1, assuming both targets are met.
Key Note: Watch for a confirmed bounce from the buy zone before executing the trade. Should the price break below $576.33, the setup will be invalidated.
Final Thoughts:
META remains a strong growth stock amidst macro uncertainty. This trade setup leverages both fundamental trends and technical confluences for a calculated entry.
Feel free to share your thoughts or ask questions in the comments below.