Is $300 a Lucky Number for Facebook?

NASDAQ:META   Meta Platforms, Inc.
Technology and the Nasdaq have gone through a rough spot lately because of inflation. That may be creating an opportunity in social-media giant Facebook.

FB is one of the few major Nasdaq stocks to hit new highs recently. Now it’s pulled back and retraced nearly six weeks of gains.

The main chart feature is the “nice round number” of $300. In addition to its psychological importance, it also roughly matches FB’s old highs from late August. Notice the shaded price zone on either side of $300.

Another important thing about FB is its economic cyclicality. Like Alphabet, FB is riding a wave of strong advertising as businesses invest to grow after the pandemic. That makes it a cleaner play on the economic recovery than other Nasdaq giants like Apple and Microsoft.

Overall sentiment has been shifting toward Mark Zuckerberg’s firm lately. It’s resolved issues with Apple’s privacy rules and is starting to grow in e-commerce. Traders may want to see if this current level around $300 becomes a new floor.

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