Facebook Stock May Have Paid Short-Term Bears, But This Trend Holds Strong

On Friday, Meta Platforms, Inc FB broke up bullishly from an inside bar pattern Benzinga pointed out on Thursday and was running another 4% higher intraday. On Wednesday, it was announced Meta and Microsoft Corporation MSFT have entered into a collaboration to integrate Microsoft Teams into Meta's Workplace platform.

The company formerly known as Facebook tumbled on the news amid continued overall market weakness but held in the bullish trend the stock has been trading in since reaching an Oct. 28 low of $308.11.

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The Meta Chart: On Oct. 28, Meta reversed course into an uptrend and has made a consistent series of higher highs and higher lows. When the stock fell further on Thursday, Meta printed another higher low at the $325.51 mark, which confirms the uptrend is still intact. Next, Meta will need to trade up above the Nov. 5 higher high at the $346.79 level.

If Meta closes the trading session near its high-of-day, it will print a bullish kicker candlestick, which may indicate higher prices will come on Monday. Bulls will want to watch for increasing bullish volume to come in to confirm the candlestick was recognized. Meta has seen a steady decline in trading volume over the past five trading days, which may act as a warning for the bulls if volume doesn’t pick up soon.

Despite the three-day sell-off between Nov. 8 and Nov. 10, Meta’s moving average convergence divergence (MACD) oscillator continued to trend over the signal line. When MACD crossed below the signal line it's called a bearish crossover and because Meta’s MACD held above the signal line, it indicates the stock is likely to remain trading in an uptrend.

Meta is trading above the eight-day and 21-day exponential moving averages (EMAs), and on Friday the eight-day EMA crossed above the 21-day, both of which are bullish indicators. Meta is trading below the 50-day simple moving average, however, which indicates longer-term sentiment is still bearish.

• Bulls want to see increasing bullish volume push Meta up over a resistance level at $349.18, which will cause the stock to print a higher-high. Above the level, the stock has resistance at $358.79 and $366.56.
• Bears want to see big bearish volume come in and drop Meta down below a support level at $333.78, which will cause Facebook to print a lower low and negate the uptrend. Below the area, the stock has support at $324.50 and $313.27.

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