I have 4 reasons we I am taking a short position on META:
- The timeframe I am using is Weekly, so the first indicator is the Moving Average of 200 days. As you can see on a chart we are trading right at 200 days MA line, we had our FED meeting, CPI numbers, and Earnings Report. There is really nothing left to move the stock up at this point. All the major companies are already reported their earnings so it is going to be hard to push up at this point. So first major resistance is 200 day MA line.
- RSI is also above 70 as of right now, remember I am using a weekly chart. Above 70 means it is telling us the stock is at the overbought level and it needs to cool down.
- MACD is also trading at an extremely high level above 20, it is rare to see a chart, especially on a weekly timeframe that is trading above 20 on the MACD level.
- Last reason is Fib Retracement because I am using a weekly chart I used retracement from an all-time high to a recent low. At this moment Meta is trading around 0.5 and facing resistance.
There you have it we have RSI, MACD, Fib Retracement, and 200-day MA indicating that there might be a big short movement coming up.
- The timeframe I am using is Weekly, so the first indicator is the Moving Average of 200 days. As you can see on a chart we are trading right at 200 days MA line, we had our FED meeting, CPI numbers, and Earnings Report. There is really nothing left to move the stock up at this point. All the major companies are already reported their earnings so it is going to be hard to push up at this point. So first major resistance is 200 day MA line.
- RSI is also above 70 as of right now, remember I am using a weekly chart. Above 70 means it is telling us the stock is at the overbought level and it needs to cool down.
- MACD is also trading at an extremely high level above 20, it is rare to see a chart, especially on a weekly timeframe that is trading above 20 on the MACD level.
- Last reason is Fib Retracement because I am using a weekly chart I used retracement from an all-time high to a recent low. At this moment Meta is trading around 0.5 and facing resistance.
There you have it we have RSI, MACD, Fib Retracement, and 200-day MA indicating that there might be a big short movement coming up.