In November, Meta Platforms (META) shares have shown bearish momentum following the company’s quarterly report, which included a one-off income tax expense of $15.93 billion
In November, Meta Platforms (META) shares have shown bearish momentum following the company’s quarterly report, which included a one-off income tax expense of $15.93 billion (as previously noted).
Investor concerns have been further fuelled by the company’s plans to raise capital expenditure to $70–72 billion in 2025, aimed at expanding data centre infrastructure and acquiring AI chips. However, after a decline of more than 20% from the autumn peak, bulls may soon attempt a comeback.
Technical Analysis of META
When analysing META’s chart on 31 October, a descending channel (shown in red) was identified. As of today, the share price has reached a support block formed by the following key elements:→ the lower boundary of the descending channel;→ the psychological level of $600 per share;→ and the May bullish gap area.
It is also worth noting that the RSI is approaching oversold territory, and a false bearish breakout below the $600 psychological level could create a bullish divergence.
Therefore, it cannot be ruled out that:→ the November decline has already priced in the post-earnings concerns;→ and that bulls may use this support zone as a springboard to resume the broader uptrend.
Published by:
Elizabeth Sterling