Meta’s Tug Of War – An Unexpected 8% Plunge As The Tech Giant Approaches A Potentially Market-Shifting Earnings Report – Meta Platforms (NASDAQ:META)

• Meta’s stock has seen substantial growth this year, soaring by 139%.
• Meta’s upcoming earnings report could potentially trigger a significant shift, with projections indicating a rise in earnings per share from $2.20 in Q1 to $2.91 in Q2.

Meta Platforms Inc META stock has experienced remarkable growth, soaring by an impressive 139% this year.

In early July, the stock reached a milestone by surpassing the psychological barrier of $300. Unfortunately, price was unable to sustain above $300 and has swiftly dropped back below this level.

A surge of sellers entering the market led to the downward correction in price. This sudden change in trajectory echoes the volatile nature commonly associated with psychological price levels.

Even if price does manage to break above $300 again, there is another barrier at $304. This next level of resistance was formed from the peak in August 2020.

In the past, this particular level has proven to be a formidable resistance point, presenting a significant obstacle for Meta’s bullish momentum.

Since encountering resistance, the price has recently seen an 8% decline. Despite this, the bulls remain optimistic, as the price has been finding solid support from the daily 20 simple moving average.

This essential technical indicator is relied upon by investors to identify price trends and potential turning points.

Meta’s stock price is currently fluctuating between the support and resistance levels, creating an interesting case study of the ongoing battle between bulls and bears.

However, the upcoming earnings report from Meta could potentially trigger a significant move in the stock.

The earnings report is set to be announced on Wednesday. The projections show a promising increase in earnings per share from $2.20 in the first quarter to an impressive $2.91.

This news comes with a word of caution, it could lead to significant volatility in the stock market, pushing the stock price up or down.

Investors should closely monitor the stock’s performance, as it has the potential to heavily impact the trajectory of its price.

Amid potential volatility, it is important to keep in mind the overall trend of Meta’s stock. Currently, the trend is bullish, indicating an upward continuation.

So despite the potential impact of the earnings report on short-term fluctuations, the broader trend is expected to remain positive. Once the dust settles after the earnings report, market watchers can anticipate the resumption of the long-term bullish trend.

After the closing bell on Tuesday, July 25, the stock closed at $294.47, trading up by 0.98%.