- During trading on Monday, we saw Meta bounce quite nicely during the trading session in reaction to the hammer that was formed on Friday.
- It’s interesting to notice that the hammer that formed on Friday was sitting at a crucial large, round, psychologically significant figure in the form of $700.
- This of course is an area that would attract a lot of attention via headlines, and potentially, options traders. With this, and the fact that the 50 Day EMA is racing toward that level, it’s not a huge surprise to see that we had a positive session.
Going Forward
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Going forward, the one thing that you need to keep in mind is that July 30 sees Meta releases earnings call. We are getting close to that timeframe, so I think that could potentially keep a little bit of a lid on the market, and it wouldn’t surprise me at all to see this market go sideways for a moment. You could see a $50 range between the $700 level at the bottom and the $750 level at the top, and it really wouldn’t change much. Ultimately, that would make a certain amount of sense because the market will be waiting for the next major bit of information.
Over the longer-term, this stock does tend to rally quite nicely, and of course there is the whole “AI play” when it comes to this market, so some traders will use it as a way to get exposure. For myself, I think it’s just a simple question of whether or not the market rises over the longer term, which obviously it does. Furthermore, you should keep in mind that Meta is a huge part of a lot of different funds, and therefore it has a certain amount of a “perpetual bid” that makes it attractive. At this point, I have no interest in trying to short this market
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