META has arguably been one of the hottest, if not the hottest, stocks of the year. The minor (for its parabolic state) correction since Tuesday has seen it hit the MA100 (1h), which is so far holding. This has completed a Head and Shoulders pattern, which is technically a bearish structure. If the neckline but more importantly the MA50 (1h) breaks, we expect the price to invalidate the bearish signal of the H&S.
Trading Plan: 1. Buy if the price closes above the 268.50 neckline and the MA50 (1h). 2. Sell if it closes under the MA100 (1h).
Targets: 1. 294 (Fibonacci 2.0). 2. 250 (the MA200 1h).
Tips: 1. The RSI (1h) has crossed over the MA trendline. This is a short term signal of bullish strength.