Is META PLATFORMS INC-CLASS A Ready to Break Out of Its Range?

META PLATFORMS INC-CLASS A (NASDAQ:META) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NASDAQ:META.

Analyzing the Technical Aspects

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Overall META gets a technical rating of 8 out of 10. In the last year, META was one of the better performers, but we do observe some doubts in the very recent evolution.

• Looking at the yearly performance, META did better than 89% of all other stocks. On top of that, META also shows a nice and consistent pattern of rising prices.
• META is one of the better performing stocks in the Interactive Media & Services industry, it outperforms 84% of 72 stocks in the same industry.
• META is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so META is lagging the market slightly.
• The long term trend is positive and the short term trend is negative. It is probably better to wait until this picture becomes clearer.

Our latest full technical report of META contains the most current technical analsysis.

Looking at the Setup

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:META currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, META also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 558.23, a Stop Loss order could be placed below this zone.

Trading setups like NASDAQ:META

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.