META is setting up for a breakout.

7 Jan 2023

What we are looking at here is META on the Daily TF.

I want to draw your attention to the downward sloping line (yellow), where price action has been attacking since the beginning of April.

The yellow line was acting as resistance until the 5th hit of that line, when a break out occurred (purple box).

Now that we have seen a breakout above that resistance line, the chart is indicating that the price action wants to go a bit higher.

Once the price gets to around the $140 level it will hit the resistance line (green), where we can expect the price to stall out and eventually retrace back down to the blue support line (as it is an up-sloping trend line).

If it breaks through the blue support, it will head back down to the down sloping (yellow) trend line which will now act as major support.

The first hit of the blue line could possibly be a great place to start going long on META, knowing that if it does pierce the blue line, the yellow line will provide some additional support for a major move to the upside.

At the end of the chart you will notice the red arrows, which indicate how price action is expected to go.

META will continue to be monitored for price action and this post will be updated as things change.

In the comments, let me know what you think will happen.

Cheers.