Chart of the Day: META

Diana (0:00)

Time now for our chart of the day. Joining us for a breakdown, it's Ben Watson, Senior Manager of Trading Services, Charles Schwab with a deep dive into Meta Platform. So, over the past five days, you've got to look at a five day chart. Does Wall Street like this one?

Ben Watson (0:16)

Good question, Diana, as we look at this shorter term chart, if you will, and you can see that it's been kind of sideways. We've been kind of trading within this range between about the 745 level and about 714, but doing it without a lot of enthusiasm and kind of sitting in this low volume node at the moment. But there was a little bit of a bright spot, perhaps investors getting a little bit of inspiration from their muse, at least at this point. But as we learned, Diane, in the 1980 hit musical movie starring Olivia Newton-John, Xanadu, muses are fickle, and we see that price moving back down without a lot of trend strength here. It may sit down between this range. If it gets a bit of a bounce off the 714, then maybe we get an upward leg here. But at the moment, not a lot of conviction on the part of Meta at the moment.

Diana (1:12)

And if we zoom out to a longer term chart, is it complicated or is there another status update?

Ben Watson (1:18)

I'll tell you what, it is a little bit complicated here. And you can look at the relationship that this stock has had with buyers and sellers over the course of the last year. And it's been, for the most part, a little bit of a downer, and a little bit of a downward relationship.

Now seeing a bit of an upward rally, but the reals kind of sitting here at the 714 support, banging their head on that 745 resistance. And so that's where maybe we need a few more followers here to come in and break this above that resistance level. The problem is that momentum indicator, the RSI down in that lower panel, is just not seeing the engagement that maybe the stock needs to push a little bit higher here, Diane.

Diana (2:03)

All right, thank you, Ben. That's been Watson, Senior Manager of Trading Services, Charles Schwab.