tech
Meta shares seem cheap, but the charts are showing an ominous sign, says Jay Woods
The social media giant looks like a screaming buy based on certain metrics, but the charts show a foreboding pattern.
TL;DR
- Meta Platforms stock exhibits highly volatile price action on short-term charts, with a consistent downtrend and broadening topping formation.
- A key support level at $525 is currently holding, potentially leading to a near-term bounce to $590, but the major trend remains lower.
- Longer-term charts suggest a bearish diamond top formation, a reversal pattern that could lead to significant price declines if support breaks.
- Despite fundamental appeal, the risk of a breakdown is too great to buy Meta stock for the long term at present.
- The advice is to 'trade it – don’t own it,' prioritizing avoiding potential pain over early entry into a perceived bargain.