Meta Platforms, Inc. (META) in an almost perfect bullish rally
Shares in Meta Platforms, Inc. (symbol ‘META’) have performed in an almost perfect bullish rally throughout the whole of the second quarter of the year with gains of more than 45% outperforming both the S&P 500 and the Nasdaq. The company is expected to report earnings for the quarter ending June 2023, on Friday 26th of July after market close. The consensus EPS is $2,85 compared to $2,46 in the same quarter last year.
“ The tech giant is going full force in investing into AI related products in an effort to be one of the big companies that provides innovative products to their clientele. In a partnership with Microsoft,” says Antreas Themistokleous, an analyst at Exness. “Today, at Microsoft Inspire, Meta and Microsoft announced support for the Llama 2 family of large language models (LLMs) on Azure and Windows. Llama 2 is designed to enable developers and organizations to build generative AI-powered tools and experiences. ” (from official Microsoft website)
Technical analysis shows the price has been trading in a bullish momentum since the beginning of the year without any clear signs of a full trend reversal. The Stochastic oscillator is in the extreme overbought level for the last 2 months while the price is approaching a strong technical resistance level of $320. This area consists of the 78.6% of the weekly Fibonacci retracement level, the upper band of the Bollinger bands as well as the psychological resistance of the round number.
Apart from the overbought Stochastic there are no other signs of a correction in the near short term. The moving averages also confirm the bullish trend since the faster ones ( 20 & 50) are trading well above the slower 100 simple moving average.
