Meta Platforms (Facebook) Stock Flashes Buy Signal As Traders Race To The Metaverse

Meta Platforms, Inc (NASDAQ:FB) opened the trading day on Thursday with a slight gap down, but by early afternoon the stock was shooting up almost 5%.

The move was not triggered by company-specific news. For technical traders, when the stock held support at the $322.70 level it created a bullish double bottom pattern on the daily chart, which was a buy signal.

As 2022 begins, Meta Platforms offers traders a chance to ride the race into the metaverse, with one Jefferies analyst comparing the opportunity to investing in the internet in its early days.

For some, the idea of a metaverse, where some forms of daily life will happen virtually, is overwhelming but many are beginning to understand the 3D network of virtual worlds could be one of the biggest disrupters this decade.

See Also: Meta Eases On AR, VR OS Project: Report

The Facebook Chart: When Meta Platforms held strong at the $322 level, it didn’t make a lower low on the daily chart, which indicates the uptrend the stock has been trading in since Dec. 3 is still intact.

  • On Thursday, Meta Platforms was looking to print a bullish engulfing candlestick, which indicates higher prices may come on Friday.
  • Meta Platforms must now print a higher high above the Dec. 28 high-of-day at the $352.71 level to continue in the uptrend, otherwise there is a chance the stock may tighten into a pennant pattern.
  • The stock is trading above the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending above the 21-day, both of which are bullish indicators.
  • Facebook’s volume by early afternoon was measuring in at almost 17 million, which exceeds the total 10-day average volume of 15.04 million. Higher-than-average volume indicates there is a high level of investor interest.
  • Facebook has resistance above at $341.78 and $349.18 and support below at $333.78 and $324.50.

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