Meta Did Not Follow My Script

I feel I must raise my hand like I committed a foul.

Shares of Meta Platforms (META) have surged higher Thursday after the company reported their quarterly numbers Wednesday evening. The stock is about 20% higher in early trading Thursday on the heels of a top and bottom-line beat and announcement of a share buyback program.

On Wednesday afternoon just ahead of Meta's earnings I wrote that, "META has made a big advance ahead of earnings but trading volume has not expanded and the Point and Figure charts do not suggest much more on the upside. If traders have new long positions at a profit they should probably grab those gains and stand aside at this juncture in time."

Real Money readers have not emailed me that I "messed up" but I feel I must raise my hand like I committed a foul.

Let's check out the charts again.

In this daily Point and Figure chart of META, below, the software now projects an upside price target in the $229 area.

 

 

Bottom-line strategy: META opened Thursday with an upside price gap. For a technical analyst like myself the question is where and when to buy. Wait for a pullback? Wait for some sideways price action? Make a small purchase and wait for a dip to add? Buy here and add on strength?

 

For now I will sit on the bench a few days or more to see where buyers enter.

 

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