Meta Platforms (NASDAQ: META), with a market cap exceeding $1 trillion, is primed for significant growth, buoyed by robust artificial intelligence (AI) integration across Facebook, Instagram, and WhatsApp.
This technological edge has resulted in a 32% year-to-date rally. Despite these gains, Meta remains undervalued compared to its peers in the ‘Magnificent Seven’ group.
Extensive AI investments and strategic advancements underscore Meta’s potential for continued growth, with a bullish price target of $800.
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According to TradingView expert TradingShot, Meta recently touched its 1D Moving Average 200 (1D MA200, orange trend-line), a crucial support level that has held steadfast since February 1, 2023.
This moving average has consistently acted as strong support, ensuring the stock’s resilience during market corrections. The recent touch on this support level is particularly significant because it mirrors previous instances where similar touches led to substantial upward movements.
Technical patterns and insights
The stock’s long-term upward trend is characterized by a robust Channel Up pattern that has been in place since the market bottom on November 4, 2022.
This pattern indicates a consistent upward trajectory, with clearly defined accumulation and bullish phases. The historical performance within this pattern offers compelling evidence for the current bullish outlook.
On October 26, 2023, META’s stock price similarly touched the 1D MA200, initiating the second bullish leg. This leg culminated on April 8, 2024, after a remarkable 95.14% rise.
This rise mirrors the first bullish leg from February 24, 2023, to July 28, 2023, which also saw an impressive 95.14% increase. The symmetry in these rises shows the strength of the Channel Up pattern and suggests a repeatable trend.
The projected long-term target is $800, representing another 95.14% rise from current levels. Given the historical pattern of previous bullish legs, it is estimated that META could achieve this target within a couple of months, potentially by February 2025.
This projection is based on the duration and magnitude of the past bullish legs, which have demonstrated a consistent 95.14% rise over similar periods.
Broader market outlook
In addition to technical analysis, the broader market context supports this bullish outlook. Meta Platforms continues to innovate and expand its digital ecosystem, driving strong revenue growth and market share expansion.
As the company capitalizes on its investments in AI, virtual reality, and social media platforms, investor confidence is likely to grow, providing additional momentum for the stock.
Investors and traders should watch the key levels mentioned and consider this a prime buying opportunity, aiming for the $800 target within a few months.
The combination of technical indicators, historical performance, and strong company fundamentals makes META a compelling investment opportunity in the current market landscape.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
