Here's where Meta shares could go from here after their post-earnings sell-off, according to the charts

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Since February, Meta Platforms has been trending slightly higher on weaker price momentum.

This week, the tech giant's stock broke below its 50-day moving average, as it sold off with investors questioning Meta's upside potential amid excessive spending on artificial intelligence. This backdrop provides an opportune time to review

has experienced a period of remarkably positive price momentum. I've highlighted the RSI in green, showing how the indicator often became overbought in rally phases — and rarely broke below the 40 level on pullbacks. In bullish market trends, the entire range of the RSI tends to move higher, confirming that the momentum overall is quite constructive.

right into the middle of the price gap formed in early February. Gaps often serve as support and resistance going forward, so I would see a move back above $450 as a bullish short-term development. This would indicate that the initial reaction to Q1 earnings was overplayed, and investors are seeing value in buying

has not touched since February 2023. Sudden moves related to earnings are not uncommon. The good news is the technical analysis toolkit includes tools like Fibonacci Retracements, price gaps, and moving averages to help us identify potential support and resistance levels. The bad news for

 

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