Shares in Facebook and Instagram parent Meta Platforms (META) remain in focus this week after soaring 5.9% to a new record close on Friday. The stock was buoyed by recent commentary from analysts at Bernstein who pointed out that the company’s significant investment in 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) is starting to tran🐓slate into revenue growt෴h through users spending more time on the social media giant’s apps.

Below, we take a closer look Meta’s weekly chart and point out important 澳洲幸运5官方开奖结果体彩网:technical levels to watch out for.

Breakout from Pennant Pattern

Since bottoming out in October last year, Meta shares have trended sharply higher, with gains accelerating after the 50-week moving average (MA) crossed above the 200-week MA in late November to form a 澳洲幸运5官方开奖结果体彩网:golden cross, a chart signal that typically predicts rising prices. More recently, the stock broke out from a 澳洲幸运5官方开奖结果体彩网:pennant pattern on Friday that suggests a 澳洲幸运5官方开奖结果体彩网:continuation of the longer-term uptrend.

However, investors should still exercise a degree of caution as several 澳洲幸运5官方开奖结果体彩网:technical indicators point to slowing price momentum. Firstly, share turnover has trended lower since early February. Secondly, as the stock made a higher high last week, the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) made a shallower higher to create a bearish 澳洲幸运5官方开奖结果体彩网:divergence.

Measuring Principle to P💦rojec𝕴t Upside Price Target

If the stock continues to move to the upside, we can project a potential 澳洲幸运5官方开奖结果体彩网:price target by using the 澳洲幸运5官方开奖结果体彩网:measuring principle. To do this, we calculate the distance of the most recent leg higher in points preceding 🍬the pennant and apply that amount to the pattern's top trendline.&n💮bsp;

In this case, we add $257 to $510 that projects a price target of $767, which sits about 42% above Friday’s closing price. This provides us with a general area on the chart where Meta’s shares may run into overhead 澳洲幸运5官方开奖结果体彩网:resistance, particularly if other indicators a♒re simultaneously pointing to overbought conditions at the same ti﷽me.

Mon🅺itor These Levels During Periods of Pr♏ofit Taking

During retracements, investors should keep an eye on two key levels on the chart that may 𝔉attract buying interest.

The first level to watch sits around $384, an area likely to find support from the stock’s prior August 2021 high that aligns 🧸closely with thꦫe rising 50-week MA.

A close below this level could see the shares fall to around $300, where they would potentially attract buyers near the 200-week MA and a multi-year 澳洲幸运5官方开奖结果体彩网:horizontal line linking a range of 澳洲幸运5官方开奖结果体彩网:price action between August 2020 and October last year.

Meta shares were up 0.4% at $542.15 in premarket trading about two hours before Monday's opening bell.

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