META Daily TA Neutral BearishMETAUSD daily guidance is neutral with a bearish bias. Recommended ratio: 45% META, 55% Cash.
* BOUNCE WATCH . Equities, Equity Futures, Commodities, Cryptos, CNYUSD, JPYUSD, GBPUSD, EURUSD and US Treasuries are up. DXY and VIX are down. META has now fallen 77% from its ATH in September 2021 after posting two consecutive quarters of revenue declines and is projecting another a decline in Q4. Their Reality Labs division which works on their virtual reality + metaverse projects has lost almost $10b this year . Their operating margin is also shrinking as cost and expenses rose 19% YOY. People are getting fearful and smart money might be getting greedy. Though premature to say that META has found a bottom, it's looking like it's found a good spot for an impulse bounce. The Employment Situation today showed that nonfarm payroll employment increased by 261k and the unemployment rate jumped from 3.5% to 3.7% . Key Upcoming Dates: US October CPI at 830am EST 11/10; UofM November Consumer Sentiment Survey at 10am EST 11/11; 2nd Estimate of US Q3 GDP at 830am (EST) 11/30.*
Price is currently testing $89 support which coincides with the descending trendline from June 2017. Volume is currently Moderate (high) and has been shrinking for five consecutive sessions and is on track to favor sellers for a third consecutive session if it closes today's session in the red. Parabolic SAR flips bullish at $127, this margin is bullish at the moment. RSI is currently trending up at 24.5 as it continues to technically test 26.51 support which coincides with the uptrend line from July 2012 as support as well. Stochastic remains bearish and is currently trending down slightly at 2.72 as it approaches a test of max bottom. MACD remains bearish and is beginning to form a trough as it tests -13.77 support. ADX is currently trending up slightly at 42 with no sign of peak formation as Price continues to fall, this is bearish.
If Price is able to bounce here then it will likely test $107.28 resistance and potentially attempt to fill the gap from 10/26/22 (~$128) when Price fell ~20% on earnings day. However, if Price continues to break down here, it will likely test $74 support . Mental Stop Loss: (two consecutive closes above) $90.
