Meta Platforms, Inc. (NASDAQ:META) is one of the stocks Jim Cramer recently put under a microscope. Cramer highlighted the stock’s decline after its earnings during the episode. He remarked:
“Lang wants to go bargain hunting, looking for stocks that have been pounded… Right now, he likes two out of these three… He likes Meta Platforms… Starbucks… and International Exchange… All three of these stocks have experienced sharp pullbacks and their charts aren’t exactly pretty here yet, but Lang still likes what he sees… Let’s start with Meta… which got killed after it reported a great quarter because of its capital expenditure guidance… Just look at this daily chart… Meta stock collapsed a couple of weeks ago… and it’s been moving lower ever since. Not good.
Lang points out that it’s now fallen below its 200-day moving average. Really bad, typically right? Meta has been hit hard to the point where it’s now filling in the gap from a big rally in May. Alright, that’s important… If it fills in the gap, the stock would go all the way back down to $591. But if it gets to that level, Lang says you should back up the truck. Again, not a pretty chart… Then there’s the on-balance volume line down at the bottom… In Meta’s case, the on-balance volume has fallen through the floor. It’s back down to Liberation Day levels, which is really rather amazing. But check out the relative strength index…
Right now, Meta is in extremely oversold territory… Lang thinks the stock’s already started to find its footing. On Friday, Meta plunged from 618 down to 601 at its intraday lows before rebounding crazily all the way back to 621. When the stock got eviscerated, this time, buyers stepped in, and it bounced right back. That’s why Lang thinks Meta has room to run past 700 by the end of the year. I will say that this was the only chart that, to me, made me feel like that there was any hope to it and we are long Meta for the Charitable Trust.”
Photo by Alexander Shatov on Unsplash
Meta Platforms, Inc. (NASDAQ:META) develops social and communication products, including Facebook, Instagram, Messenger, Threads, and WhatsApp. In addition, it creates virtual, augmented, and mixed reality hardware and software through its Reality Labs division.
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Disclosure: None. This article is originally published at Insider Monkey.
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