meta sell trade- A dark cloud cover (red oval) on October 5, which indicated that the sellers were gaining control after a gap up opening⁷.
- A shooting star (red arrow) on October 11, which signaled a rejection of higher prices and a potential top reversal⁷.
- A bearish engulfing (red oval) on October 18, which confirmed the downtrend and the loss of momentum⁷.
The stock also broke below the 50-day moving average (blue line) on October 19, which acted as a support level in the previous uptrend. This was a bearish crossover that suggested a change in the trend direction . The 50-day moving average is now acting as a resistance level, as the stock failed to close above it on October 20 and 21.
The stock is currently trading near the 200-day moving average (red line), which is another important support level. If the stock breaks below this level, it could trigger more selling pressure and a further decline. The next support levels are at $250 and $200, which are the previous lows in June and February 2023.
The stock is also forming a bearish flag pattern (green lines), which is a continuation pattern that indicates a pause in the downtrend before another drop⁹. The flagpole is formed by the sharp decline from $330.54 to $306.47, and the flag is formed by the consolidation between two parallel trend lines in an uptrend. A break of the lower trend line would signal the activation of the pattern and a target of $282.40, which is calculated by subtracting the length of the flagpole from the breakout point⁹.
Therefore, based on these technical indicators, the outlook for META is bearish and the stock could face more downside risks in the near future. However, this analysis is not a recommendation to buy or sell any securities, and investors should do their own research and due diligence before making any trading decisions.
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