META Heads into Earnings at New All-Time Highs, Following My Preferred Bullish Scenario, But Will the Strength be Sustained?

by Mike Paulenoff

January 26, 2025 • 9:48 AM EST

On December 27, 2024, with META trading at 595.26, this is what I posted to the MPTrader Discussion Room in response to a member's question:

My pattern work from the October 2023 low at 279.40 to the December 2024 ATH at 638.40 (+128%) tells me that META is at a technical crossroad now... META's most recent upleg from the 11/19/24 low at 547.71 to the 12/11/24 ATH at 638.40 has the "right look" of a completed advance. Given my above-described analysis, it is not surprising to me that META has embarked on a pullback (9% so far) to a 580 low on 12/20/24. The $64,000 question is whether or not the correction is over, or if META has more work to do on the downside? Unless META claws its way above 611 on a sustained basis, my near-term pattern bias is for downside continuation into major support lodged from 568 down to 528, with the "pivotal emphasis" being 548-550. A violation and close beneath 548 will represent a negative technical omen for META, which will have to hold 528-530 to avert triggering intermediate-term sell signals in my work. For the time being, I am watching 611 Resistance juxtaposed against 568 Support... Last is 595.26...

On January 6, 2025, after META had successfully retested its 580 low from 12/20/24, META climbed above my key reversal signal price level of 611.00.

On January 13, 2025, I posted the following commentary about META's developing bullish setup with the stock trading at 603.55:

My attached Big Picture Daily Chart unequivocally shows META's dominant post-Nov. 2022 (88.09) bull trend remains the dominant feature for investors. As long as any forthcoming weakness is contained above key near-term support lodged from 580.00 to 593, META will remain bullish technically, and as such, my pattern work favors another upleg that projects to new ATHs at 670-685... My nearer-term work treats all of the price action off of the 12/11/24 ATH at 638.40 as a progressing Bullish Coil formation that tilts my work to the upside, perhaps in a post-earnings upside thrust after earnings are released on 1/29/25. In other words, as long as META has not violated 580 on a closing basis in the upcoming two weeks, my optimal setup favors upside continuation to higher ATHs... Last is 603.55...

Fast-forward to last week, we see on my attached Daily Chart that META bolted to the upside out of the aforementioned Bullish Coil formation. The stock surged from 616 to a New All-Time High at 652 last Friday (1/24/25), climbing to within 2.8% of the lower boundary of my optimal target zone of 670 to 685, up a full 9.5% from my December 27th chart commentary. Considering that META reports Earnings this coming Wednesday (1/29/25) after the close, my expectation is for the stock price to enter my target zone either ahead of or in reaction to Earnings, however, my concern technically is whether or not META strength will be sustained?

Join MPTrader members and me ASAP-- especially ahead of a consequential week of Earnings Reports-- for our ongoing discussions and analysis of META, as well as for many, many other opportunistic technical and fundamental setups in individual stocks, ETFs, macro indices, commodities, precious metals, and Bitcoin...

Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 7-day Trial!

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