Charts indicate it may be best for investors to hold off on chasing Meta at the moment

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In a recent analysis of Meta Platforms (META), our experts have identified key technical indicators that suggest both opportunities and challenges for this leading growth stock. While the recent earnings announcement from Meta Platforms has sparked optimism among investors, there are still hurdles to overcome for the bulls to declare victory.

META has been trading in a narrow range between $430-$440 support and $520-$540 resistance levels since the first quarter. This sideways price action is reminiscent of the pattern observed in the second half of 2023. Back then, META experienced a similar rangebound phase before breaking out to new highs in early 2024.

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By examining both the daily and weekly charts, our experts have identified crucial momentum indicators like the Relative Strength Index (RSI) and Percentage Price Oscillator (PPO) to assess META’s potential for a breakout. The analysis reveals weakening momentum conditions on the weekly chart, signaling a significant challenge for META to exit its current consolidation phase.

Investors can learn from the historical patterns of META’s trading ranges in 2023 and 2024 to inform their decision-making process. Just as a breakout above a clear resistance level led to new all-time highs in the past, investors today may benefit from exercising patience and waiting for a similar opportunity before going all in on META.

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