META popped up a doji at a verrry important technical level!
Will the candlestick make or break the stock’s downtrend?
Check out what’s up on the daily chart:
META Platforms, Inc. (META): Daily
META Platforms: Daily Equity Chart by TradingView
Facebook’s parent company is having a shaky start to 2023 after EU regulators ruled that Facebook, Instagram, and WhatsApp – all owned by Ireland-based META – had violated EU’s General Data Protection Regulation (GDPR) by “forcing” its users to see personalized ads.
The Irish Data Protection Commission said that META would have to pay 210 million EUR ($222.5M) over the violation and another 180 million EUR ($191.5M) related to Instagram’s breaches.
META announced that it would appeal the decision but it was enough to make some bulls think twice.The stock, which has jumped from its November lows, just popped up a Doji around the 128.00 psychological handle.
As you can see, the Doji lines up nicely with a trend line resistance that hasn’t been broken since April 2022. What’s more, it’s also just under the daily chart’s 100 SMA.
Will the Doji herald a continuation of META’s downtrend? Or will the previous weeks’ bullish momentum be enough to bust the stock from its resistance zones?
I’ll keep close tabs on market sentiment in the next few days.
If layoffs and other macro concerns continue to weigh on tech companies, then META could gain bearish momentum and revisit its lows near 110.00 and 90.00.
But if start-of-year risk-taking spills over to META, then we could see the stock break above the resistance zone that we’ve marked.
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