Technical Update - Down trend in Meta (Facebook) on pause, but for how long?
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Meta (Facebook) has been trading in a large falling Wedge like pattern for the better part of 2022. Break out from wedge usually occurs 2/3 of the way to the apex i.e. where the two trend lines meet. So, there is likely some distance to move for Meta. It could potentially drop to test the support area 137-123. There is divergence on RSI however, indicating an exhaustion of the trend. However, if RSI breaks below its rising trendline the selling in Meta is likely to continue.
Short term, Meta has found support at 154.25. A daily close below and down trend will resume continuing its falling wedge (on the weekly) scenario.
A close above 184 and Meta will have broken its falling trend line reversing the down trend for a move towards 200-225
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