Meta's Job Cuts Push the Stock Higher, But Is It Sustainable?

Let's see if the firm is back on track.

Meta Platforms (META) announced a further 10,000 job cuts and cancelled 5,000 job listings Tuesday. Traders welcomed the news by lifting share prices about 5% in early trading Tuesday. Let's check out the charts and indicators to see if this current stock strength is sustainable.

In this daily bar chart of META, below, I can see that prices have been trading sideways after a big rally. For now, this looks like a "normal" consolidation pattern following a rally. This could be a pause before renewed gains but in this current market environment I would not get too bullish too soon.

Prices are trading above the rising 50-day moving average line and above the bottoming 200-day line. The On-Balance-Volume (OBV) line made a low in early November but has weakened from early February. The Moving Average Convergence Divergence (MACD) oscillator has been weakening from early February. 

 

In this weekly Japanese candlestick chart of META, below, I see a mixed picture. Prices are trading above the bottoming 40-week moving average line. The weekly OBV line shows a pullback from late January suggesting a weakening pattern with sellers being more aggressive than buyers. The MACD oscillator is above the zero line but narrowing.

 

 

In this daily Point and Figure chart of META, below, I can see a potential upside price target in the $219 area.

 

 

In this weekly Point and Figure chart of META, below, I can see that prices have met an upside price target in the $153 area. A trade at $198 or higher could refresh the uptrend.

 

 

Bottom line strategy: Is META back on track? Too soon to say for certain.

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