October has historically been the second-best month for the information technology sector in the S&P 500. The sector typically gains an average of 2.7% in October, according to Dow Jones Market Data. The best month is November, with an average increase of 3.1%. This trend likely follows the statistically weakest month—September. Meta Platforms (META)’s strong performance supports these historical patterns.
In our analysis of Meta Platforms’ stock chart on 25th September, we noted that the price was forming an ascending channel (shown in blue). Before breaking a key resistance level at $540, the price formed a bullish “inverted cup and handle” pattern, which coincided with another bullish pattern—the “inverted head and shoulders.”
Since then, Meta Platforms’ stock has maintained its upward trend, reaching new all-time highs. The price has surpassed $595 and is now nearing the psychological $600 mark.
Several factors have contributed to the bullish sentiment:
→ The upcoming earnings season. Meta Platforms is set to release its Q3 results on 30th October.
→ Excitement surrounding new developments at Meta Platforms Inc., including the augmented reality device Orion and the AI-powered tool Movie Gen, which generates videos based on text prompts.
→ A strong stock market rally, driven by better-than-expected September jobs data. Non-farm payrolls increased by 254,000 last month, surpassing the consensus estimate of 150,000 from a Bloomberg survey. The unemployment rate fell to 4.1% from 4.2% in August, contrary to analysts' expectations of no change.
The stock continues to move within the blue ascending channel. The relatively low volatility seen since 20th September could be attributed to the price's proximity to the channel’s median, which often balances supply and demand. However, Friday’s large bullish candlestick, opening near the low and closing near the high, signals renewed buying momentum. This suggests that the $580 level may serve as future support, as the chart indicates a buyer's advantage here.
According to a analyst survey, the average price target for META over the next 12 months is $608.
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