Asset Watch
Thursday, January 12, 2023
Even though 2022’s winners may come under pressure as the Fed fights inflation, has Meta Platforms’ damage already been done?
If so, the technical backdrop has become highly constructive in recent days. For example, every rally attempt in 2022 ended when the stock reached its 75-day moving average. But, with a breakout occurring on Jan. 3, the trend has shifted from bearish to bullish.
The only caveat is that the stock’s daily RSI hit ~68 on Jan. 10, which means it’s approaching overbought conditions. Therefore, a pullback near the 75-day MA ($120) may be an attractive entry point if it showcases relative strength versus the S&P 500.
As a result, could Meta Platforms be ripe for a reversal, or will new lows materialise before its bear market ends?