Meta (NASDAQ: META) stock price surged 6.38% last week. The stock of the social media giant soared to $316, which was its highest level since February 2022. Currently, the stock is having a pullback as the investors are taking profits at fresh yearly highs.
After a 0.57% gain during Monday’s session, META share price slid today. Till press time, the stock was changing hands at 308.29, which was 0.79% below its previous close. The latest analysis reveals that the bullish rally is at a very critical stage right now.
According to the latest news, the recently launched Meta’s Twitter-rival app Threads is experiencing a major decrease in daily active users. The app, which hit total users of 100 million last week, is now reporting a significant decrease in activity.
As per some independent reports, Threads has seen a 25% downtick in its daily active users. This could be one of the reasons behind a short pullback in Meta stock price, which is down 2.5% from last week’s high. Nevertheless, Meta’s founder Mark Zuckerburg remains confident that the Threads App is on the right track.
The focus for the rest of the year is improving the basics and retention,
Mark Zuckerburg – via Threads Post
The latest analysis of NASDAQ: META shows that the ongoing price rally is quite overextended. The bearish divergence on the Relative Strength Index (RSI) is the main reason why I’m not buying this stock at current levels.
A closer look at the chart reveals that the price is retesting the ascending channel on a higher timeframe. This is the first retest of this channel since April 2022. Meta stock price forecast will become very bullish if the price gains strength in this channel. Currently, a major resistance level could be the 0.786 fib retracement zone which lies at $320.
In the meantime, you can also follow me on Twitter, where I share my personal trades and real-time outlook on META.
This post was last modified on Jul 18, 2023, 15:41 BST 15:41