Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Chart Of The Day: Metaverse Fails To Provide Boost For Facebook Shares

By Investing.com (Pinchas Cohen/Investing.com)Stock MarketsDec 08, 2021 09:32AM ET
www.investing.com/analysis/chart-of-the-day-metaverse-fails-to-provide-boost-for-facebook-shares-200610876
Chart Of The Day: Metaverse Fails To Provide Boost For Facebook Shares
By Investing.com (Pinchas Cohen/Investing.com)   |  Dec 08, 2021 09:32AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Shares of multinational, mega-cap tech gaint Meta Platforms (NASDAQ:FB), the company formerly know as Facebook, closed up 1.55% on Tuesday. That's undeniably a positive move, but the stock is still well off its recent highs, down as much as 16% since early September.

Meta is listed on two major US indices, the S&P 500 which climbed 2.07% during yesterday's trading and the NASDAQ 100 which surged on Tuesday, +3%. Both indices did quite a bit better than FB, over the same timeframe.

Even when compared to its FAANG peers, shares of the company formerly known as Facebook underperformed yesterday: Amazon (NASDAQ:AMZN) added 2.8%; Apple (NASDAQ:AAPL) jumped 3.5%, scoring a new record to boot; Netflix (NASDAQ:NFLX) rose 2.1% and Alphabet (NASDAQ:GOOGL) climbed 2.87%

So why is FB underperforming by just about any measure?

Though we don't actually know, we can speculate since there are a variety of possible, fundamental headwinds currently battering the company.  After the most recent whistleblower, Frances Haugen, made headlines in late summer, sentiment about Facebook's social media platform, and the company itself, has soured—fans are no longer as enthusiastic. Users and investors alike may also have grown tired of Facebook's seemingly endless slimey antics. 

Adding to the negative sentiment, the company's recent rebranding, to Meta Platforms, seems puzzling to many and senseless as well. Myriad investors and users see it as an effort to simply put lipstick on a pig—without really improving the product or rectifying the company's many failings.

As well, tying the company to the metaverse and its virtual universe aligns it more with the cryptosphere, where an escalating array of metaverse tokens have carved out an alignment with the fortunes of all cryptocurrencies, which are currently mostly struggling.

For traders focused more on technicals, price action is the only thing that matters since it's an expression of supply and demand, the primary thing that moves markets in their universe.

FB Daily
FB Daily

After FB shares achieved the target of a rising wedge, they found support at the bottom of a falling channel. However, yesterday's lower close formed a bearish Shooting Star, below the 200 DMA, as the 50 DMA hurtles down toward the formation of a Death Cross, suggesting the price may never reach the channel top.

The Shooting Star followed a rising gap, which looks like the set-up for an Evening Star, completed with a long red candle, digging deeply into Monday's green candle. However, we wouldn't give too much credence to an Evening Star that doesn't follow a substantial rally. This one just started so has little to give back by way of a reversal on its own momentum.

Also, observe the level of volume that supports the price action. Volume spiked at the same time as with the near-10% plunge from late November to early December. It drIed out during the recent rebound, suggesting participation is on the downside.

Trading Strategies

Conservative traders should wait for the stock to retrace all the way back to the channel top.

Moderate traders would be content with a long red candle.

Aggressive traders could sell a rally, since premarket trading is up about 0.5% at time of writing at $322.81, while accepting the higher risk of going rogue against the tides, for the proportionately higher rewards of being quicker than the rest of the market on the way down. A coherent trade plan is essential. Here's an example:

Trade Sample

  • Entry: $325
  • Stop-Loss: $327
  • Risk: $2
  • Target: $305
  • Reward: $20
  • Risk-Reward Ratio: 1:10
Chart Of The Day: Metaverse Fails To Provide Boost For Facebook Shares
 

Related Articles

Chart Of The Day: Metaverse Fails To Provide Boost For Facebook Shares

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Martin mm
Martin mm Dec 08, 2021 11:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
i like your opinions a lot, but im so happy you were wrong this time.
rj jj
rj jj Dec 08, 2021 11:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
enough time hasnt even passed by to be wrong. your reading comprehension is very low.
Martin mm
Martin mm Dec 08, 2021 11:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
stop loss 327, you know what that mean. =)
Pinchas Cohen
Pinchas Cohen Dec 08, 2021 11:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
rj jj  Thank you for defending my honor, but no need to insult rj.
Pinchas Cohen
Pinchas Cohen Dec 08, 2021 11:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Martin mm  Stop loss is part of a "sample" of a trade plan, not the analysis, which is in the body of the text.
Shocking Car videos
Shocking Car videos Dec 08, 2021 8:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
only rookie investors will chase metaverse related stock.. busines is still unproven. kind of like ARK last year
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email