META stock price faced rejection from the $330.00 hurdle and reversed downward. It dropped below the $300.00 support and displayed a bearish trend reversal pattern.
Facebook stock price lost the bullish momentum and seems to be entering a correction phase. It slipped below the 50-day EMA showcasing that the short-term trend is reversing down.
FB stock price (META) witnessed a sharp sell-off in the previous session and formed a bearish candle. It seems like traders booked the profits before earnings.
Meta Platforms Inc. released the quarterly earnings of October 25, 2023, after the bell. It reported an EPS of $4.39 and revenue of $34.146 Billion.
Meta beat the EPS prediction by 20.49% and revenue prediction by 1.69%. Despite that the downfall did not halt and sellers continued to pull the price down.
In today’s session, the META share price will react to its earnings but the pre-open tick suggests a gap down open of -3.35%.
The stock is likely to open the October 26th regular session near $289.50 with a bearish bias. Investors need to be careful because volatility may rise and wild swings may be visible in the coming sessions.
META Stock Price Entering a Correction Phase
META stock price has turned short-term bearish on a daily time frame chart. The recent sell-off in the stock is supported by a high selling volume. It denotes some big investors are cashing out their investments and expecting more downfall.
Facebook stock price performed well in the first six months of 2023. But now, the rally has taken a halt and the distribution phase has begun.
On the lower side, $273 will act as a strong support and buyers may come forward to defend it. As of now, META stock price is inside the bears’ grip and more correction is pending.
Facebook Stock Price Turned Bearish
Facebook stock price is forming a bearish inverted hammer candle on the weekly time frame. It confirms the bearish trend reversal and shows the presence of sellers on the higher levels.
Meanwhile, the broader market indices and technology sector stocks are falling which is adding fuel to the downfall in META.
The MACD curve generates a negative crossover and reverses downward indicating bearishness. The RSI at 42 also slopes down denoting weakness and sellers strengthening their grip.
Conclusion
META stock price fell 4% before earnings and another 3% cut is expected in today’s session.
Meta Platforms Inc. reported the earnings after the closing bell and succeeded in beating the estimates. Despite that, the stock price continued the fall and entered in a correction phase.
Technical Levels
- Resistance levels: $320.00 and $330.91
- Support levels: $273.51 and $261.71
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/10/26/meta-stock-price-below-300-earnings-drag-the-fb-stock-down/