Stock of the day: Meta

In the last stock of the day analysis for this week, I’ll quickly jump back to the Meta, which I’d previously analyzed at the beginning of September. Back then I highlighted the descending triangle pattern and said the breakout to the downside seems slightly more probable:

“I think it’s all about the two horizontal levels (155 and 185). The price breaking the lower line would be a proper sell signal and the price breaking the upper area would be a buy signal. In any case, we have to wait and see because when the price is inside of a tight range, it’s not the best price action strategy. In my opinion, a breakout to the downside sounds slightly more probable.”

As you may have expected, that was in fact the outcome, and the price did go lower. The breakout happened on Tuesday, thanks to CPI data from the US which killed the mood on stocks. Yesterday, Meta tried to come back above the 155 resistance, but the attempt was unsuccessful. This confirms the bearish sentiment and a proper sell signal.