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 artificial intelligence (AI) is starting to translate into revenue growth 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 technical levels to watch out for.
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 golden cross, a chart signal that typically predicts rising prices. More recently, the stock broke out from a pennant pattern on Friday that suggests a continuation of the longer-term uptrend.
However, investors should still exercise a degree of caution as several technical indicatorspoint to slowing price …