Meta (META): Watching for a Setback

27. Aug.

It has been a lovely rise within META since 2023. However, we are now continuing to range for some time, which is usually a sign of a possible setback before a continuation. This setback could be beneficial for sustainable growth and further rises.



Zooming in, we can observe a range building since February 2024. This range has been respected multiple times so far, and it seems likely to continue. However, the small breach of the top looks somewhat like a Swing Failure Pattern (SFP) and could be a signal of profit-taking by many traders. If we breach through the $440 level, we could see a change of structure if a candle closes below it. If this happens, it would confirm our analysis. Until then, we might see higher prices as this is technically still a bullish trend within this range.

Another small indicator supporting our view is the bearish divergence on the RSI. While RSI is a good indicator with a high win rate, it’s not infallible, so this scenario might not play out. Still, this seems the most likely outcome to us at the moment.

4. Sept.

Trade ist aktiv

We failed to make a new high and got rejected around the $545 level, as expected. The first support was now found on the 12H chart at the EMA50 around $506. However, there's a possibility that the price could quickly drop towards the EMA100 at $492, where we might find stronger support. Both zones can be used to take profits or to secure positions.

If this level doesn't hold, the next crucial support would be around $452, which aligns with the bottom of the range (0-level) and the EMA200 on the 12H chart. Falling below this level could lead to a rapid decline towards $400.

The less likely scenario would be a renewed rise and a breakthrough above the $545 mark. This zone could be used as a stop-loss or to secure the position.

Good luck!