Blue lines- bullish channel
Black line- bearish RSI divergence
In previous posts we talked a lot about the technical picture of the META stock price. Price so far remained inside the blue upward sloping channel and respected the channel boundaries. Yesterday price broke below the lower channel boundary providing a new bearish signal after a long time. The RSI bearish divergence has warned us on time that a reversal was imminent. We consider that the most likely scenario is for the entire upward move from October 2022 lows is complete and that at least a pull back has started. We consider the recent highs to be intermediate highs expecting price to pull back towards $170 for the formation of a higher low.
