- Meta Platforms has improved from a Timing buy-on-weakness signal to a Confirmed buy-on-weakness signal.
- Portfolio managers are buying Meta at lower prices, indicating potential positive movement in the stock.
- If Meta underperforms the index, it will be removed from the Model Portfolio, but the Confirmed Buy Signal suggests a potential bounce.
This article analyzes Meta Platforms, Inc. (META) from a technical analysis perspective, highlighting a shift from a Timing buy-on-weakness signal to a Confirmed buy-on-weakness signal. The author, Tom Lloyd, emphasizes that portfolio managers are actively buying Meta at lower prices, suggesting potential positive momentum in the stock.
- Buy-on-Weakness Signal Improvement: Meta Platforms has recently transitioned from a Timing buy-on-weakness signal to a Confirmed buy-on-weakness signal. This shift indicates that portfolio managers are re-entering the market to purchase Meta at reduced prices. The report visually illustrates this change, with the buy signal moving from the Tmg column to the Cfrm column.
- Model Portfolio Considerations: Meta Platforms is already part of the Model Portfolio due to a previous SID Buy Signal that has since shifted to a Hold Signal. The author introduces a strict Sell Discipline, stating that if Meta underperforms the index and portfolio managers do not drive a recovery, it may be removed from the Model Portfolio.
- Confirmed Buy Signal and Price Movement: The Confirmed Buy Signal in the Cfrm column is interpreted as an indication that Meta may bounce back to test its recent high. This signal suggests that sellers are retreating, and buyers are returning, with demand surpassing supply. The author observes changes in the Demand-to-Supply (D:S) chart, noting the improvement from red bars of Supply to black bars of Demand.
- Due Diligence and Analyst Ratings:
