META Breakout or Breakdown? Critical Zones to Watch

3 Jan

Current Trend:
META is showing recovery signs on the 1-hour chart, forming higher lows and testing the upper boundary of a descending trendline. On the daily chart, the price is in consolidation with minor bullish divergence visible in momentum indicators.

* Key Observations from Indicators:
* MACD (1-hour): Shows a bullish crossover, with the histogram gaining strength, signaling upward momentum.
* Stochastic RSI (1-hour): Near overbought levels, suggesting caution for further upside in the short term.
* Volume: Lower during the recovery phase, indicating that buyers may lack strength to push higher decisively.

Key Support and Resistance Levels (Daily Chart):
* Support Levels:
* $590: Immediate support with decent PUT activity.
* $583: Strong support zone aligned with the recent low and GEX data.
* Resistance Levels:
* $601-$602: Immediate resistance near the breakout zone of the descending channel.
* $610: Key psychological and historical resistance level, aligning with CALL wall activity.
* $620-$632: Significant resistance cluster as seen from prior rejection points and the upper channel boundary.

GEX Insights:

* Gamma Exposure (GEX):
* Positive GEX Zones: Above $601, CALL dominance increases, acting as a significant resistance zone.
* Negative GEX Zones: Below $590, gamma exposure shifts negatively, indicating increased downside volatility.
* Options Activity:
* Moderate IVR levels suggest options premiums are reasonably priced, suitable for directional plays.
* PUT walls at $583-$590 indicate strong support zones, while CALL walls at $601-$610 highlight stiff resistance.

Trade Scenarios:
Bullish Scenario:
* Entry: Above $602.
* Target: $610 (initial), $620-$632 (extended).
* Stop-Loss: Below $590 to minimize downside risk.
Bearish Scenario:
* Entry: Below $590.
* Target: $583 (initial), with further extension to $575.
* Stop-Loss: Above $601 to cap losses.

Conclusion:
META is at a pivotal juncture. A breakout above $602 could lead to a strong bullish move, while rejection from this level might push the price back to retest $590 or $583. Traders should closely monitor momentum and volume at these critical levels.

Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always conduct your own research and trade responsibly.

3 Jan

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Sorry, Ignore GEX above. I uploaded the wrong one. Here is correct one.

3 Jan

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Gamma Exposure (GEX) Analysis:

* Positive GEX Zones:
* $599-$600: Highest positive GEX, aligning with immediate resistance. This suggests strong CALL activity at this level, where buyers may attempt a breakout.
* $615: A significant CALL wall, indicating further resistance for META’s upward move.
* $620: The third CALL wall with a notable positive gamma cluster, serving as a major resistance zone.
* Negative GEX Zones:
* $585: A notable PUT wall, acting as a critical support zone for META’s price.
* $580: Strong negative GEX at this level, suggesting increased volatility and bearish pressure if the price breaks below.

Options Insights:
* IVR (Implied Volatility Rank): 50.2%, indicating moderate options pricing relative to historical volatility. This reflects balanced risk/reward for options traders.
* IVx Average: At 39.1%, implying relatively subdued implied volatility.
* Options Activity Breakdown:
* CALLs: Dominant at 30.1%, reflecting bullish sentiment near $599-$620.
* PUTs: Concentrated near $580-$585, showcasing bearish protection.

Support and Resistance Based on GEX:
* Support Levels:
* $585: Immediate support reinforced by PUT walls and high negative gamma activity.
* $580: Key downside level, with strong PUT interest and highest negative GEX.
* Resistance Levels:
* $600: Immediate resistance, marked by the highest positive GEX.
* $615-$620: Secondary resistance cluster, aligning with significant CALL walls.

Trade Scenarios Based on GEX:
Bullish Scenario:
* Entry: Above $600.
* Target: $615 (initial), $620 (extended).
* Stop-Loss: Below $585 to manage downside risk.
Bearish Scenario:
* Entry: Below $585.
* Target: $580 (initial), with potential extension to $570.
* Stop-Loss: Above $600 to cap losses.

Conclusion:
META is positioned between critical GEX levels, with $600 serving as a breakout point for bullish momentum and $585 as a key support zone. Watch for volume and options flow confirmation at these levels to guide directional trades.