Meta Platforms Inc META was popping over 3% higher on Thursday, continuing its bullish break from a triangle pattern that Benzinga called out on Dec. 19.
On that date, Benzinga said Meta would meet the apex of the triangle on Jan. 5. The stock continued to trade within the pattern until Jan. 3, when Meta broke up from the upper descending trendline of the triangle on higher-than-average volume, which confirmed the pattern and set the stock into a strong uptrend.
Thursday’s push higher came in tandem with the general market, which saw the S&P 500 charging north in the afternoon after a high level of volatility earlier in the session. The market was digesting CPI data released by the U.S. Labor Department, which showed inflation ticked slower in December.
When the S&P 500 started to pull back at the end of the trading day, Meta showed strength, holding near to its high-of-day, which is a good sign for the bulls.
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The Meta Platforms Chart: Meta’s most recent higher low within its uptrend was formed on Tuesday at $125.15 and the most recent confirmed higher high was printed at the $133.44 mark on that same day. On Thursday, Meta was spiking higher but didn’t show signs the next higher high has occurred.
- Meta closing the trading day near its high-of-day price will see the stock print a bullish Marubozu candlestick, which could indicate the stock will trade higher on Friday. The second most likely scenario is that the stock will trade sideways and print an inside bar candlestick, which would lean bullish for Meta’s price action next week.
- A pullback, at least to print a higher low, is likely to come over the next few days because Meta’s relative strengh index (RSI) is measuring in at about 72%. When a stock’s RSI reaches or exceeds the 70% mark, it becomes overbought, which can be a sell signal for technical traders.
- Meta has resistance above at $139.75 and $150.74 and support below at $128.53 and $122.53.
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Image and article originally from www.benzinga.com. Read the original article here.