Key Takeaways
- Meta shares will likely remain in focus for the remainder of the week after the tech titan’s stock set a record high on Wednesday and the company kicked off its highly anticipated annual Connect conference by unveiling its latest tech gadgets.
- The stock broke out from a five-month ascending triangle on above-average volume earlier this month, with the share price continuing to track higher into the company’s conference.
- The measuring principle forecasts a price target in the stock of $700, while a bars pattern predicts an upside target of around $790.
- Investors should also keep an eye on the $535 level, an area on the chart where prior resistance could become future support near the ascending triangle’s upper trendline.
Meta Platforms (META) shares will likely remain in focus for the remainder of the week after the tech titan’s stock set a record high on Wednesday and the company kicked off its annual Connect conference.
The company unveiled a lower-cost Quest 3S headset, Orion augmented reality glasses, new artificial intelligence (AI) features, and other tech gadgets at the highly anticipated event. The Facebook and Instagram parent has also turned to celebrities, announcing deals with actors Awkwafina, John Cena, and Judi Dench, among others, that will allow the company to use their voices in a new AI assistant.
Since the start of the year, Meta’s stock has gained around 60% through Wednesday’s close as the social media company’s latest quarterly results indicate that significant investments in AI infrastructure and product innovations have started to translate into higher advertising revenue and earnings.
Meta shares gained 0.9% on Wednesday to finish at $568.31, after surging to an all-time high of $576.88 during the session.
Below, we take a closer look at the technicals on Meta’s chart and identify important price levels to watch out for.
Ascending Triangle Breakout
Meta shares broke out from a five-month ascending triangle on above-average volume earlier this month, with the stock price continuing to track higher into its Connect 2024 conference.
The stock’s breakout coincided with the relative strength index (RSI) moving into overbought territory to confirm bullish price momentum but also caution of short-term stretched conditions.
To forecast potential price targets above the stock’s all-time high (ATH), investors can use the measuring principle and a more subjective bars pattern. Let’s look at each in further detail.
Measuring Principle Price Target
To project a price target using the measuring principle, we calculate the distance of the ascending triangle near its widest point and add that amount to the pattern’s top trendline. For instance, we add $165 to $535, which forecasts an upside target in the stock at $700.
Bars Pattern Price Target
Speculating an upside target using a bars pattern works by using a prior trending move to forecast a potential future move, assuming price action tends to rhyme.
In this case, we extract the stock’s trend higher from December to March and reposition it from this month’s low, which projects a price target of around $790.
We selected this prior move because it commenced from an earlier ascending triangle’s lower trendline on Meta’s chart, similar to the stock’s price action from the most recent ascending triangle.
Key Retracement Level to Watch
Given the RSI indicator points to overbought conditions in the stock, investors should also keep a close eye on the $535 level, an area on the chart where prior resistance could become future support near the ascending triangle’s upper trendline. Market participants who prefer to trade pullbacks rather than chase breakouts could look for buying opportunities near this area.
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As of the date this article was written, the author does not own any of the above securities.