Meta Platforms Develops This Chart Pattern, Will Meet The Apex On Jan. 5: What To Watch

Meta Platforms, Inc META gapped down about 2% to start the trading day on Monday after closing up about 3.5% on Friday.

Despite the S&P 500 plunging almost 6% since Dec. 13, Meta had traded mostly sideways between $114 and $122.

Within the sideways pattern, Meta developed into a triangle, making a series of lower highs and higher lows. The stock is set to hit the apex of the pattern on Jan. 5, making it likely Meta will break up or down from the triangle before that date.

Like many tech stocks, Meta performed poorly this year, plunging about 65% from the Jan. 3 opening price of $338.30 to trade near the $116 level. Growth stocks have been negatively impacted by soaring inflation and steeply rising interest rates, which caused consumers to tighten their spending.

It’s unclear if the bottom is in for Meta, but when the stock breaks from the triangle pattern traders and investors will get an indication of the future direction for at least the short term.

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The Meta Platforms Chart: On Monday, Meta tested the lower ascending trendline of the triangle as support and wicked up from the area. If the stock continues to hold within the pattern later on Monday, Meta will print either a doji, hammer or inverted hammer candlestick, which suggests the stock may bounce on Tuesday.

• Both bullish and bearish traders will be watching for Meta to eventually break up or down from the triangle on higher-than-average volume, to indicate the pattern was recognized. If the stock breaks up from the triangle, a longer-term rebound may be in the cards, but if Meta breaks down from the pattern, the stock could retest the 52-week low of $88.09.
• Meta hasn’t completely filled the gap that was left behind on Oct. 27. Gaps on charts fill about 90% of the time, which makes it likely Meta will eventually break up to trade at $128.53.
• Meta has resistance above at $122.53 and $128.53 and support below at $114.77 and $102.50.

Photo: Sergei Elagin via Shutterstock