Meta Platforms, Inc. aka Facebook (FB) is up again, hovering around (+2.80) in early trading, with another 7 points till it meets with the 50d. Looking for a little dip in the AM to scalp it today. Price action needs alot of work before I start swinging a core position. For one thing, FB needs to regain the 50d moving average and the 9/21d exponential moving averages need to turn in the interim.
Meta Platforms, Inc. Trending?
Given the strength in big cap tech yesterday, while declining stocks outnumbered advancing stocks (NYAD) should render a bit of hesitation. Once the markets open, we’ll have a better idea what institutions have in mind for today.
Meta Platforms, Inc. Daily Chart
Investors have voiced concern that free cash flow will grow more slowly at a time when the company is not undervalued. In addition, in its earnings report October 28, Meta Platforms (FB) reported Q3 earnings of $3.22 per share on revenue of $29.0 billion. The consensus earnings estimate was $3.20 per share on revenue of $29.5 billion. The key here is that revenue grew 35.1% on a year-over-year basis.
The company said it expects Q4 revenue of $31.5 to $34.0 billion, while the consensus revenue estimate is $34.86 billion.
Technically speaking, Facebook is above its 200d moving average, establishing a series of higher highs and higher lows.
RSI moved above the 50 zone, signaling the trend is strengthening. MACD is above its signal line and bullish. Stpochastic is rising.
Average range for the day (ATR) is just under 10 points, so the 50d moving average is within reach.
In addition, the stock is well above the Volume by Price / VBP (left panel histogram) supply resistance zone (horizontal line) as it trade 338.83 this morning.
In order for day trades to work I’d also like to see strength in the various stocks in the group. For example, Nvidia is higher this monring. That needs to hold its gains (+8.94).