META Breakout or Breakdown? Critical Zones to Watch Current Trend:
META is showing recovery signs on the 1-hour chart, forming higher lows and testing the upper boundary of a descending trendline. On the daily chart, the price is in consolidation with minor bullish divergence visible in momentum indicators.
* Key Observations from Indicators:
* MACD (1-hour): Shows a bullish crossover, with the histogram gaining strength, signaling upward momentum.
* Stochastic RSI (1-hour): Near overbought levels, suggesting caution for further upside in the short term.
* Volume: Lower during the recovery phase, indicating that buyers may lack strength to push higher decisively.
Key Support and Resistance Levels (Daily Chart):
* Support Levels:
* $590: Immediate support with decent PUT activity.
* $583: Strong support zone aligned with the recent low and GEX data.
* Resistance Levels:
* $601-$602: Immediate resistance near the breakout zone of the descending channel.
* $610: Key psychological and historical resistance level, aligning with CALL wall activity.
* $620-$632: Significant resistance cluster as seen from prior rejection points and the upper channel boundary.
GEX Insights:
* Gamma Exposure (GEX):
* Positive GEX Zones: Above $601, CALL dominance increases, acting as a significant resistance zone.
* Negative GEX Zones: Below $590, gamma exposure shifts negatively, indicating increased downside volatility.
* Options Activity:
* Moderate IVR levels suggest options premiums are reasonably priced, suitable for directional plays.
* PUT walls at $583-$590 indicate strong support zones, while CALL walls at $601-$610 highlight stiff resistance.
Trade Scenarios:
Bullish Scenario:
* Entry: Above $602.
* Target: $610 (initial), $620-$632 (extended).
* Stop-Loss: Below $590 to minimize downside risk.
Bearish Scenario:
* Entry: Below $590.
* Target: $583 (initial), with further extension to $575.
* Stop-Loss: Above $601 to cap losses.
Conclusion:
META is at a pivotal juncture. A breakout above $602 could lead to a strong bullish move, while rejection from this level might push the price back to retest $590 or $583. Traders should closely monitor momentum and volume at these critical levels.
Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always conduct your own research and trade responsibly.
