Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

Gold closes week higher on rate cut speculations

News

Week Ahead Preview: 20th of May

News

Walmart’s stock hits record high on Q1 results

News

Crude oil rises on US supplies, inflation data

News

Another nice quarter for NVIDIA?

News

Alibaba delivers earnings miss, shares slide

Trends & Analysis
News

Gold closes week higher on rate cut speculations

News

Week Ahead Preview: 20th of May

News

Walmart’s stock hits record high on Q1 results

News

Crude oil rises on US supplies, inflation data

News

Another nice quarter for NVIDIA?

News

Alibaba delivers earnings miss, shares slide

Asset Watch

Will Meta Platforms’ magnificent run continue?

Tuesday, April 9, 2024

Despite buoyant U.S. nonfarm payrolls, another spike in U.S. Treasury yields, and some Fed officials striking a more hawkish tone, the S&P 500 shrugged off all three en route to a 1.11% gain on Apr. 5. And though the trend is your friend, maintaining a bullish bias seems prudent until the technicals suggest otherwise.
An example of this is Meta Platforms which has been on a tear, as Jefferies and RBC Capital Markets raised their price targets to $585 and $600, respectively, last week. The former said that “Meta has too many advantages to count” and sports “several strategic advantages over its peers.”
The latter added that in the AI advertising space, “META indicated as strongly as we’ve ever heard over GOOGL on a relative basis.”

While the long-term fundamentals remain resilient, you should monitor some key momentum indicators to predict short-term price action.

Meta’s 20-day moving average (the blue line at the top) held throughout most of the rally off the 2022 lows. However, when breakdowns occurred, choppy price action ensued, and the bulls struggled to push the stock higher.

Meta also showcased a negative RSI divergence in mid-2023, where the blue line at the bottom made lower highs while the stock made higher highs (depicted by the vertical white line on the left). A breakdown below the 20-day MA eventually followed.

With a similar RSI divergence now present, pay close attention to the 20-day MA (near $500). If it holds, a bullish position is justified for as long as Meta trades above the key metric.

So, will Meta keep marching higher, or will a better entry point emerge in the weeks ahead?


Site by Pink Green
© ADSS 2024


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.