Down 14% from ATHs, is it time to buy again?

Taking a look at Meta for any pattern similarities heading into the earnings season. Currently, the Facebook owner’s shares are trading at around $471.03 a share and are up 2% on the day so far. There are reports of the tech giant eyeing an investment stake into RayBan maker EssilorLuxcottica, which could be a reason for its move higher in today’s session. Looking at April when the stock underwent a retracement, its share price fell almost 25%, which can be seen as quite volatile in a period of three weeks. Since the 8^th of July, the share price has fallen almost 16% but is now only down just under 14% since the day is looking positive so far. This may perhaps be another retracement that investors/traders could see as a buying opportunity, simply based on the technical aspect. As a move of almost 16% has already occurred, this may have been a near-term bottom since it’s not guaranteed that the price would fall around 25% once again. However, it does create the risk of a deeper decline if one were to enter a position today. Nonetheless, due to the current losses others may see the risk to reward now more favourable than before for longer-term gain. The support for the near term is now yesterday’s low of $459.12 followed by $454.52. A break below $454.52 would increase the likelihood of a deeper retracement towards around $425-$430. Towards the upside, a move above $481-$482 may suggest that a new higher low was formed around the current level. The technical indicators are now negative due to the recent profit-taking, suggesting that bearish momentum is still present. But as they are lagging indicators, all the gains may be swept up by the time they turn positive once again.

Note: any of the above is not financial advice nor should it be used as a signal to buy or sell.