Meta Platforms, the parent company of Facebook, has been on a strong uptrend since early 2023. If you look at the weekly chart, you’ll notice a well-defined rising trend channel with three key zones: the green support area at the bottom, the gray balance area in the middle, and the red resistance zone at the top. This structure has been guiding Meta’s price movements for over a year.
Meta’s Uptrend: A Closer Look at the Weekly Chart
The weekly chart shows Meta consistently bouncing off the green support zone, which has acted as a floor whenever prices dipped. Each time the stock hit this area, it found buyers and started climbing again. On the other hand, the red zone at the top has acted as resistance, marking points where the stock has struggled to move higher.
Right now, Meta is trading at the upper end of this channel, firmly in the red resistance zone. Historically, this area has led to corrections or sideways movements. Given the stock’s 20% rise in 2024 alone, it might be a good moment to consider taking some profits. If you’re holding Meta and your position size has grown significantly, trimming back to your original allocation could be a smart move.
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Zooming Into the Daily Chart
Looking at the daily chart, you can see that the last time Meta was deep in the green support zone was back in August 2023. Since then, it has been steadily moving higher, bouncing between the gray balance zone and the green support area. This back-and-forth movement has created a classic uptrend pattern with higher highs and higher lows.
The big shift came at the start of 2025, when Meta surged higher, breaking through the gray balance area and moving straight into the red resistance zone. This kind of strong move often signals overbought conditions. When a stock reaches a known resistance level after a sharp rise, it’s common to see some form of a pullback, whether that’s a short-term dip or a period of sideways consolidation.
What Comes Next for Meta?
Since Meta is now in the red resistance area, history suggests that a correction could be on the horizon. This doesn’t mean the uptrend is over—far from it. A pullback to the gray balance area in the middle of the channel could provide a better re-entry point for those looking to buy. If the stock moves sideways or pulls back slightly, it could set up another leg higher.
For long-term investors, this is a great time to reassess your position size. If Meta has grown to represent a larger portion of your portfolio than intended, taking some profits now and waiting for a potential dip could be a solid strategy.
Meta has had an impressive run, but no stock moves up in a straight line forever. Keeping an eye on these trend channels can help you navigate the moves ahead and make more informed decisions. And if you want to stay ahead of market trends like this, there’s an easy way—many investors have already signed up to receive insights directly in their inbox. It’s a simple step, and all it takes is an email.
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