{"id":23285,"date":"2025-02-19T07:30:00","date_gmt":"2025-02-19T12:30:00","guid":{"rendered":"https:\/\/jeffclarktrader.com\/market-minute\/?p=23285"},"modified":"2025-02-18T10:56:38","modified_gmt":"2025-02-18T15:56:38","slug":"whats-next-for-meta-platforms","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/whats-next-for-meta-platforms\/","title":{"rendered":"What\u2019s Next for Meta Platforms?"},"content":{"rendered":"

Lots of folks are betting against Meta Platforms (META) right now.<\/p>\n

The stock has not had a down day since Mark Zuckerberg got caught leering at Jeff Bezos’ girlfriend during President Trump’s inauguration. As of Friday, that was 20 straight days of gains.<\/p>\n

It is one of the most remarkable streaks in stock market history. And, lots of folks are betting on it ending… soon.<\/p>\n

But, that bet may not pay off too well. While the streak is destined to end at some point, it doesn’t mean shares of META are destined to tumble.<\/p>\n

Yes, META is overbought. Yes, the technical conditions are quite stretched to the upside.<\/p>\n

But, there are two ways the market can relieve those conditions. META could indeed decline, as many folks are betting on happening. Or, META could simply mark time – chopping back and forth in a tight trading range – for a few weeks.<\/p>\n

Based on the current technical setup, I’ll bet on META chopping around for a bit.<\/p>\n

Take a look at this chart…<\/p>\n\n\n

\"\"<\/figure>\n\n

META rarely trades more than 7% away from its 50-day moving average line before it reverses course and heads back towards the line. Last Friday, META closed more than 15% above its 50-day MA.<\/p>\n

This is an “extremely overbought” condition.<\/p>\n

The last time META was in this condition was in early October when the stock closed 14% above its 50-day moving average line. One month later, META was trading for the same price.<\/p>\n

Rather than declining, shares of META chopped back and forth long enough for the 50-day MA to catch up with the price of the stock, and for the technical momentum indicators at the bottom of the chart to fall back to neutral territory.<\/p>\n

That’s the sort of action we’re likely to see when META’s current winning streak finally ends.<\/p>\n

\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/div>\n

Take a look at the MACD and RSI indicators at the bottom of the chart. They are well into overbought territory – which is a warning sign.<\/p>\n

But, as META has been pressing higher, these momentum indicators have been pressing higher right along with the stock.<\/p>\n

This action confirms the strength of the current trend. There isn’t any “negative divergence” to suggest a reversal will happen anytime soon.<\/p>\n

That doesn’t mean META won’t pull back. But, it does suggest that any immediate decline is likely to be mild.<\/p>\n

In other words, rather than correcting the current overbought condition with a decline in the share price, META is more likely to correct over time.<\/p>\n

The stock is set to chop back and forth for a while – thereby giving the 50-day MA a chance to catch up to the current price of the stock…<\/p>\n

And frustrating all of those folks betting on a sharp decline.<\/p>\n

Best regards and good trading,<\/p>\n

\"Signature\"<\/p>\n

Jeff Clark
\nEditor, Market Minute<\/em><\/p>","protected":false},"excerpt":{"rendered":"

Lots of folks are betting against Meta Platforms (META) right now. <\/p>\n","protected":false},"author":100,"featured_media":0,"comment_status":"closed","ping_status":"0","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-23285","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"ai_tts_audio_outdated":false,"ai_tts_legacy_post":false,"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/23285","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/100"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=23285"}],"version-history":[{"count":3,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/23285\/revisions"}],"predecessor-version":[{"id":23297,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/23285\/revisions\/23297"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=23285"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=23285"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=23285"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=23285"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=23285"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=23285"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=23285"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}