Meta falls below 100 hour MA for first time since early Jan.
In a CNBC interview this morning, former President Trump dubbed Meta “the enemy of the people,” setting off a negative shift in the stock’s performance. This comment has revealed a significant weakness in what had previously been a bullish trend for Meta, as the stock’s price dynamics have taken a downturn. Specifically, Meta’s stock has breached its 100-hour moving average of $489.72 for the first time since early January, when the moving average hovered around $348. This break below the moving average is notable, given the stock had rallied 53.31% since the low in January.
Currently, Meta shares are down $23.27, translating to a 4.61% decrease, positioning the stock at $482.62. This drop is poised to be its largest single-day decline since December 2022. The descent comes despite the positive momentum generated by Meta’s last earnings report released on February 1, which showed an EPS of $5.33 on revenues of $40.11 billion. These figures represented a significant improvement from the previous year’s EPS of $1.76 on revenues of $32.16 billion, marking a 202% increase in EPS on a 24.7% increase in revenue.
Looking forward, Meta’s stock is approaching another critical technical level, its 200-hour moving average of $471.53. The stock has not traded below this average since December 12, 2023, suggesting a pivotal moment for its short-term market direction.
What would give Meta stock holders some relief?
A move back above the 100 hour MA is now needed to give the owners of Meta some relief that the move was potentially overdone.
However, until then, the sellers are more in control – at least in the short term.