META, the company with the drooping breasts logo, still called Facebook, that should be called Mombook, is singing its swan song. Isn't it funny how the companies change their names but they are still called the old name? Facebook changes to Meta but everyone calls it Facebook. Google changes to Alphabet but everyone calls it Google. Twitter changes to X but everyone calls it Twitter. Humans are creatures of habit.
Anyhoo, the META weekly and monthly charts are ugly like a lot of the pictures on Facebook. On the weekly chart, price printed the higher high a week ago and it comes with a red rising wedge pattern (bearish) and overbot stochastics agreeable to a pullback on the weekly basis. The red lines for the chart indicators show universal negative divergence across all indicators. She's cooked. Crispy-fried. And everybody and his brother are buying it because the guy on television said so. If you are going long META, you are running into a buzzsaw.
The neggie d spanks price lower last week, and META recovers a couple percent this week, but the chart would be expected to continue lower into a multi-week pullback. There is no reason for price to come up for another record high since all the indicators are now out of gas and cannot provide any more upside fuel. Price violated the upper band so the middle band at 566 is on the table and lower band at 501.
The low in that chart is 586 so call that the bottom rail of the wedge. If that trend line fails, and price drops below 586, it is likely lights out for META and Zuck will be crying in his cafe latte after wind-surfing. The two largest volume weeks over the last 9 months are both sell weeks indicating that the smart money is sneaking out the back door handing shares to the sucka's Joe Sixpack, Carlos Bagholder, the Uber driver, and Carmelita, that hangs out down on Alvarado Street by the Pioneer Chicken stand.
The ADX shows that the strong trend higher in META ended n the first quarter of the year and the move higher ever since is not considered a strong trend. The Aroon shows that the META bulls remain firmly in the bull camp and the META bears also remain fully in the bull camp. That is funny. You know what happens when everyone is bullish, right? The weekly chart is ugly and price would be expected to fall for multiple weeks forward (through January).
The META monthly chart blew Keystone away. It was not expected to be that negative. Right away, the Aroon is a flashing neon light. Every single META bull is convinced that the stock will move higher and higher for months to come (the long-term) and every single META bear also believes that the stock will move higher forever. Pause for laughter. These idiots are going to be disappointed going forward.
The red rising wedge on the monthly chart is bearish. Price violates the upper band so the middle band at 425, and rising sharply, is on the table. The RSI and stochastics are overbot agreeable to a pullback. It is an ugly chart. The red lines show neggie d stating that price has topped-out on the monthly basis except for the MACD line that remains long and strong.
There are only a couple more trading days in the month so the MACD likely does not have time to drop enough to form neggie d but you will have to wait to see how it plays out on Tuesday. Even so, the January candlestick for the monthly chart will likely begin with a matching price high, and if META sells off as the weekly chart dictates, neggie d will form for the MACD on the monthly and the long-term top for META will be in over the coming days. Isn't that something?
If the bulls pump hard to try and send price up for another high and manage to keep the MACD on the monthly long and strong, the top will then occur a month later. She is close and it would not be surprising to see the January monthly chart set up completely negative calling the long-term top for Facebook, er Meta. The ADX on the monthly chart shows the upside remaining in a strong trend but the ADX is a lagging indicator and that strong trend will evaporate if the ADX falls a few points to below 30.
Keystone is not in META long or short right now but obviously the play would be on the short side from here forward for at least a few weeks. If you are a META long holder, and bragging to everyone about the stock, you probably Can't Believe We're Here. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
Note Added Friday, 12/27/24, at 4:00 PM EST: The session ends the day and week with META at 599.81 pennies shy of 6 hundo. The all-time record high is 637.89 on 12/11/24. CEO Zuckerberg is wearing virtual reality goggles using AI to try and find his car keys.
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