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Meta Platforms Inc. - (META) - April 28, 2023

Over the last six months, social media giant Meta Platforms (META) has climbed up the rankings in the SIA S&P 100 Index Report from the bottom of the red zone toward the top of the Green Zone. Yesterday, the shares jumped 13.9% in response to a positive earnings report and they are now up 31.9% since returning to the Green Favored Zone in March. Yesterday, the shares moved up another 7 positions to 7th place. Yesterday Meta Platforms (META) gapped to the upside on a jump in volume, continuing a series of significant moves in response to earnings reports that has emerged since the beginning of 2022. Last year when the shares were under distribution, earnings-related downward gaps appeared in February and near the October final shakeout. This year, we have now had two upward gaps on volume after the release of earnings in January and April.

Yesterday’s gap is also technically significant because it snapped a long-term downtrend line and carried the shares to a new 52-week high, confirming that the upward trend that started six months ago continues.

The next notable zone of resistance on trend appears in the $300.00 to $350.00 area with a measured move near the midpoint. Initial support has moved up toward the $225.00 breakout point from the $200.00 round number.

Meta Platforms (META) shares have been under strong accumulation since the start of this year, staging two large High Pole advances off of bullish Double Top breakouts. With only a small correction in between these two rallies have combined into a Bullish Catapult. The shares have also snapped a downtrend line and rallied to their highest levels in a year. Initial resistance appears in the $245.95 to $250.00 area between a horizontal count and a round number, followed by $282.50 based on a previous column high, the $300.00 round number, and $318.15 which is based on a vertical count. Initial support appears near $218.40 based on a 3-box reversal.

With a perfect SMAX score of 10, META is exhibiting weakness across the asset classes.

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