Chart of the day

Where do we stand fundamentally?

Meta is developing humanoid robots capable of performing household tasks, aiming to create a platform for other companies to build their robots. This move is part of Meta's strategy to diversify beyond social media and compete in the robotics industry, where it faces competition from companies like Tesla and Nvidia.

Meta plans to spend $60–65 billion on AI development in 2025, including launching its Llama 4 foundation model and building a massive 2-gigawatt data center in Louisiana. The company aims to make its AI assistant, Meta AI, serve over 1 billion users.

The META is reaching the high of this cycle's third wave at $740. This is strong near-term resistance for an upside continuation, and I see this as the end of the fifth wave upside from $40. A break above $740 can invalidate this view and lead to an immediate extension higher in the still third wave.

We are in a possible third-wave finish here and to confirm that we need to see a pullback and a break below $705. A breakout above the resistance $740 level will lead to an extension higher. A break below 705 will confirm the end of the third wave.

_{You can take a near-term short-trade entry with an SL above $770 to target $650 and lower. You can trade it with options as well.}