Prior to September 2021, the $Meta Platforms, Inc.(META)$ price chart showed upward movement with short-term, but deep drawdowns. Since the fall of 2021, META has been going through a difficult period related to numerous scandals due to user data leakage, unprofitability of the division in charge of the metaverses, etc.
Over this period, the stock price dropped by more than 60%. In 2023, META has moved up more than 170% in 2023. This is a bounceback from a disastrous 2022 and it validates CEO Mark Zuckerberg's declaration that this would be Meta's “year of efficiency.”
In this article I would like to share on what are the factors I would consider after looking at META performance from 2021 to 2023, and based on my model prediction, how I would use Technical Indicator to find a possible entry price.
What Facebook (META) news can influence the price in the future?
External factors that influence the META stock price:
Macroeconomic statistics. Global GDP and the U.S. GDP, inflation, labor market statistics, etc. If the economy is growing, the number of jobs increases, and the company shows positive financial results, with investors ready to invest money in its stock.
Geopolitical factors. These include trade wars, customs duties, the pandemic, etc.
Actions of competitors. For example, changes to the Apple privacy policy on new gadgets have led to decrease of the ad traffic on Facebook.
Internal factors that influence the META stock price:
Financial results. For example, more than a USD 6 billion loss suffered by the Reality Labs, a division that is in charge of the metaverse development, in the H1 was the main reason why the META stock price dropped in 2022.
Internal problems of the company: platform hacks, leakage of user data, collusion with Google on dividing the online advertising market, allegations of hate speech (#StopHateForProfit), etc.
Model Prediction For Meta Platforms (META) Price
Based on what the model have predicted for META from 02 Jan to 12 Jan, there would be 3 days when META would experience a pullback. This would be a good opportunity to find an entry price, but I think I would share more on the technical indicators in later section on how we can do it (A simple one though).
META stock price prediction on Tuesday, 02 Jan would saw it moving downwards to close at $350 at the end of day, though we could see trading range to be between $322 to $378. This might be a good opportunity to go in for a short term gain.
META is also expected to trade flat on 03 Jan, before we saw META rebound on 04 Jan to close high at around $353, another small upside could be expected on 05 Jan, before it ended 1st week of trading in 2024 with close price at $354.
META is expected to open second week with rather flat trading though we could see a high of $382 during 08 Jan trading. Similarly we could see 09 Jan Day High hitting $381 but it did close lower at $353.
10 Jan looks better as META begin to trend higher though we could see Day Low of $329, but Day High could hit $387 as well, before it close higher at $358. 11 Jan see very small changes to both Day low and Day high with close price at $357.
We will be looking for a better performance on 12 Jan, where we could see Day High at $392 before it expect to close at $363.
If I were to follow what the model predicted, 02 Jan could be a good time to take position and held on till 12 Jan for maximum gains, but I think it is also important to look at the Technical Indicators.
Technical analysis of the META price
In order to find the best entry point, also monitor the signals of technical analysis of the Meta Platforms (META)chart by TradingView.
Based on the current 1 month Technical Analysis for META, it is showing signals “Strong Buy”, this signifies that the majority of signals are bullish (to buy).
A small tips here would be to use the settings from M15 to H2 for short-term signals, it is recommended that you use the settings from M15 to H2.
Is Market In Long Or Buying Sentiment for META? Use RSI
Even though we could be receiving a Strong Buy signal from Trading View, but from what I usually use to determine if the market is interested in a LONG position or buying sentiment for this stock.
META has just retreat from the overbought region, this would mean traders and investors might be waiting for another pullback (or profit taking since 29 Dec 2023) before they decide whether to enter.
This might help me to set my possible entry price around $343, which is within the trading range for 02 Jan 2024. In order to determine whether is this possible entry price reasonable, I would use SMA 50 day period and see if META is currently trading above this level.
Is META trading above $343 on the 50-Day Period?
If I were to look at the 50-day period for META, we can see that it is currently trading above the 50-day period which is estimated to be around $343.
This would mean if there is a pull back that is going to happen, we might see META moving during the Day into near $343.
Summary
Based on what I have gathered and the model prediction, I think there is an opportunity to look at trading META at around $343, which is within the trading range for 02 Jan 2024.
This would make us some profit if we were to held it till 12 Jan, but as usual, I will still monitor how META would be trading on 02 Jan, before I determine the entry price again.
This entry price could be a ballpark figure and depend on the Day Low and Day High of META trading.
Appreciate if you could share your thoughts in the comment section whether you think META would be trading lower on 02 Jan and we could get an opportunity to perform an entry trade?
@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire @TigerClub appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
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