Meta Platforms (NASDAQ: FB) closed over 7% higher last week, it is looking like the correction could be over and a rally could start soon. FB has fallen by over 15% from the all-time high that it hit earlier in September, thus investors are now looking to buy the dip in FB in hopes of a rally soon. FB rallied by over 7% in price last week which could be an indication of a new all-time high soon due to the return of the buyers in FB. Should you buy FB despite the strong downtrend?
Here is what the charts are pointing towards-
After a bullish divergence a strong reversal was seen, FB formed several strong bullish candles and it is now looking like it will be retesting the resistance at $323 that it broke out of.
Investors are also expecting a reversal soon due to the strong fundamentals of FB which will help support the price. Thus investors are expecting huge growth potential after the Meta rebranding.
FB is forming a downward wedge thus it is looking bearish however a breakout could be seen soon if the rally continues.
If FB is able to sustain above $323 after the retest a bullish view will be confirmed, thus giving confidence to investors which will help resume the rally.
Investors can enter after a succesful retest near the $323 zone, and for investors who want to take a safer entry can wait for FB to breakout from the wedge above the $340 mark.
If a long position is taken after a retest investors must be cautious of the resistance at $337, as it could be a point of reversal for FB.
A target of $353 can be kept, followed by $380 and eventually a new all time high in the coming months.
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