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Meta Stock Oversold Near Rising 50 MA: Time for a Bullish Reversal?

ByStephen Loke
Published 12/06/2023, 01:16 AM
META
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Meta's stock, META formerly known as Facebook (NASDAQ:META) has been correcting for the past few days and it is quite oversold. The stochastics is oversold and the stock has corrected to the rising 50 day moving average.

It looks like the stock is ripe for a bullish reversal back up.


meta stock at the rising 50 MA

The above chart is the daily chart of META. The stochastics is at an oversold level. The last time the stock had an oversold stochastics, the stock had a nice run up. Short term traders and swing traders take note.

The stock is sitting at the rising 50 day moving average now. This can be a powerful support area. The stock also had a small bottoming tail and a doji. This is a sign of bearish momentum slowing down.


60 min chart of META

A look at the 60 min chart above tells us that the stock is not ripe yet for a short term bullish move up. We want to see it trade back above yesterday's high and also the 60 min 20 MA which is the red line in the chart above.

Back in late October, the stock went back above the 60 min 20 MA. This was when the stock was oversold in the daily chart. META rose quite a lot from there.

So it is important for us to wait for the stock to move back above the 60 min 20 MA.


weekly chart of META

Let's take a look at the long term picture of the stock. The weekly chart shows how this stock went from a weekly stage 4 downtrend to a stage 1 basing and it is now in a stage 2 uptrend. Learning about market stages is very important and that is what I teach my readers.

Recently the stock broke out of a weekly triangle. The reason why it is trading sideways is because of the resistance on the left. It needs time to be absorbed.

But the triangle gives us a clue. As long as price stays above the apex of the weekly triangle, we should stay bullish on META. Eventually it will make a new high.

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