Meta’s impressive 20-day winning streak correctly attracted a lot of attention – until Tuesday ended abruptly. The longest ranking in any stock’s history, its winning streak will surely end at some point. Now with it, the key question is: What will happen next? First, let’s admit the obvious – there is no clear level of near-term support yet. This can be frustrating for investors who have been waiting for a decline. Usually, when buying weaknesses, we have at least one reference point to rely on, but Meta is currently in “support discovery” mode. Typically, we use the term when describing stocks in freefall: traditional support levels do not matter (moving averages, trend lines, previous highs, etc.). Although Meta has gained the right to make a profit, there is no clear indication of where the next bid will come. Despite this uncertainty, there is some good news: We don’t need to know where the requirement will return. When the stock (or market) finds the floor, the point becomes the new support. From a technical point of view, the first new low will be the starting point for the formation of the next potential pattern. For illustration purposes, this is an example of how the next merge phase of Meta unfolds. If it reflects past settings, it may help position the inventory as another leg. However, considering how likely it is to extend the RMB? The 20-day winning streak is historic, but it is not discussed that Meta’s 20% growth in these 20 days is not unprecedented. Although impressive, it is not the biggest move like this. From the 2023 lows, Meta soared nearly 50% in just 20 days. Although these extreme gatherings are rare, they happen to reveal patterns. After 20 days, looking at the historical performance of Meta, there are 20% trends, and all (red lines) except 1 (red lines) occur in the uptrend. In most cases, the stock continues to be higher in the coming months and even years. Of course, there is no guarantee that history will be repeated. However, if returns are required during this pullback, Meta will have the opportunity to consolidate, digest its gains, and potentially build the foundation for the next move. Meta vs. 500 Meta has been the leading stock since the second half of 2022, turning from a serious underperforming performance to a S&P 500 to a consistent win over the past two years. Now, the focus is on whether Meta is going too far from the market, and its latest surge has increased the move. However, as highlighted by this relative chart, the meta/SPX ratio has now returned to a long-term uptrend below 2022. In other words, Meta may have paused after getting nearly 20% of 20% in 20 days, but once the move is digested, it won’t be surprising that it resumes its outperform performance and maintains the uptrend again. – Frank Cappelleri Founder: https://cappthesis.com Disclosure: (None) All opinions expressed by CNBC Pro contributors are their opinions only and do not reflect the opinions of CNBC, NBC Universal, their parent or affiliates before It is transmitted on television, radio, the Internet or other media. The above is subject to our terms, conditions and privacy policies. This content is for informational purposes only and does not constitute financial, investment, taxation or legal advice or advice on purchasing any guarantee or other financial assets. The content is general in nature and does not reflect any individual’s unique personal situation. The above may not be suitable for your specific situation. You should strongly consider seeking advice from your own financial or investment advisor before making any financial decisions. Click here for the full disclaimer.
Meta’s historic winning streak ends. What’s next in the chart | Real Time Headlines
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