- During trading on Monday, we saw Meta bounce quite nicely during the trading session in reaction to the hammer that was formed on Friday.
- It’s interesting to notice that the hammer that formed on Friday was sitting at a crucial large, round, psychologically significant figure in the form of $700.
- This of course is an area that would attract a lot of attention via headlines, and potentially, options traders. With this, and the fact that the 50 Day EMA is racing toward that level, it’s not a huge surprise to see that we had a positive session.
Going Forward
Going forward, the one thing that you need to keep in mind is that July 30 sees Meta releases earnings call. We are getting close to that timeframe, so I think that could potentially keep a little bit of a lid on the market, and it wouldn’t surprise me at all to see this market go sideways for a moment. You could see a $50 range between the $700 level at the bottom and the $750 level at the top, and it really wouldn’t change much. Ultimately, that would make a certain amount of sense because the market will be waiting for the next major bit of information.
Over the longer-term, this stock does tend to rally quite nicely, and of course there is the whole “AI play” when it comes to this market, so some traders will use it as a way to get exposure. For myself, I think it’s just a simple question of whether or not the market rises over the longer term, which obviously it does. Furthermore, you should keep in mind that Meta is a huge part of a lot of different funds, and therefore it has a certain amount of a “perpetual bid” that makes it attractive. At this point, I have no interest in trying to short this market
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.