Stock of the day: Meta Platforms

Meta Platforms, the tech behemoth formerly known as Facebook, has undoubtedly been making headlines, and not always for the right reasons. As the company gears up to unveil its earnings tomorrow, after the session, there’s palpable anticipation in the air. With an expected EPS of 2.91 and forecasted revenue of 31.08B, all eyes are on whether Meta can deliver to these projections.

However, even as we await these critical numbers, the technical landscape paints a story of its own. Since July 19th, the company’s stock has been on a steady descent. A plausible reason for this decline might be the new app Threads. The app has been at the receiving end of considerable negative press, with user sentiment seemingly underwhelmed.

Further complicating matters for Meta is the breach of the uptrend line on July 21st, sending a not-so-subtle signal to traders about the potential mid-term bearish turn. As of now, the stock hovers around the $288 mark per share, a level highlighted in yellow, symbolizing its importance as a key horizontal support. For traders, this level is akin to a crossroads – a descent below this yellow-marked support could serve as a robust bearish cue, signaling short-selling opportunities. Conversely, a bounce off this price point might tempt bullish traders to jump on the long side of the trade.

Yet, it’s worth noting that with the imminent earnings release, many traders might choose to remain on the sidelines, awaiting clarity. The forthcoming financial data is expected to wield significant influence over the stock’s technical trajectory. A positive earnings surprise could lend the much-needed bullish momentum, while disappointing figures might reinforce the bearish sentiment.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-meta-platforms-2