Chart of the day

META extension higher

Where do we stand fundamentally?

Meta Platforms recently reported strong Q3 2024 earnings, with a record revenue of $40.6 billion, driven by robust ad sales and advancements in AI. However, there are concerns about slowing user growth and the impact of increased infrastructure investments planned for 2025. Meta is also expanding its AI initiatives, introducing a search engine designed to reduce dependency on Google and Bing. Additionally, layoffs were announced across divisions like WhatsApp and Instagram as part of ongoing cost-cutting measures

META is breaking above the long-term consolidation resistance 540 and is extending higher in the long-term fifth wave for a possible target of 780. We need confirmation of a breakout above 590 for an upside continuation in the uptrend fifth Elliott Wave to 770. Invalidation of this immediate upside extension could come upon a break below 500.

An invalidation level of a fifth-wave long-term extension higher and a bullish cycle continuation is much lower at 400 meaning we are in the strong bull uptrend. As said the continuation of an extension could lead to a 770 target in the medium-term to long-term if META sustains a breakout above 540.

META 15 days chart

Try a long trade entry with a stop loss below 470 to target 750. You can trade it with options as well

META trade setup