Meta Platforms (META) has slumped to a new 52-week low Tuesday as another sell-side firm downgraded its fundamental rating on the company.
In our September 13 review of the META charts we wrote that, "This is not a positive environment for META - rising interest rates, a softening economy, and broader market weakness, so traders should avoid the long side of META for now." We noted Point and Figure chart targets of $141 and $129 -- both have been reached so let's go back to the charts.
In the updated daily bar chart of META, below, we can see how the shares have declined in the past month or so. The shares trade below the bearish 50-day moving average line and below the declining 200-day line.
The On-Balance-Volume (OBV) weakened in September. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In the weekly Japanese candlestick chart of META, below, we see a bearish picture. The shares have been in a longer-term decline and have wiped out several years of previous gains. Prices trade weak below the declining 40-week moving average line.
The OBV line has been soft since the middle to 2021. The MACD oscillator is bearish.
In this daily Point and Figure chart of META, below, we can now see that the software has decided that the $101 area is the next downside price target.
In this weekly Point and Figure chart of META, below, a price target in the $85 area.
Bottom-line strategy: META is extended on the downside (oversold) and could try to hold around the $130 level or even bounce temporarily, but the odds favor further losses in the weeks ahead. Continue to avoid the long side.
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