Meta shares hold above long-term MA-200 support level: weekly report

Traders Union
All News
Financial News
Meta Platforms slips 0.64% this week

Highlights

Meta stock is experiencing medium-term selling pressure while maintaining a bullish long-term trend above major support levels.
Technical indicators confirm prevailing bearish momentum, with weak trend direction and sellers dominating the current trading environment.
Expected trading range for the coming week is $602 to $639, with a higher probability of sideways or downside movement barring a reversal above resistance.

Workforce cuts and AI pivot shape sentiment amid capital spending plans

Meta announced a major restructuring initiative with plans to lay off around 8,000 employees globally, starting May 20, which is approximately 10% of its workforce. Approximately 7,000 staff will be reassigned to roles supporting the company’s acceleration in artificial intelligence, as Meta seeks to streamline operations with a focus on AI development. These moves are part of a broader effort to manage a projected capital expenditure budget between $125 billion and $145 billion for the year, mainly allocated to AI infrastructure.

Sustained bearish momentum as technical signals favor sellers this week

On the weekly chart, Meta remains under its MA-20 and MA-50, signaling an ongoing bearish trend, but is still well above the MA-200, which provides longer-term support. Key weekly support is found near $602, with resistance at $639. The RSI stands at 46.28 and CCI at -53.46, both pointing to neutral-to-bearish momentum, while the weekly Stochastic RSI also sits at a neutral level. Momentum indicators such as the MACD (strong sell signal), ADX (12.52, indicating a lack of trend), and negative Bull/Bear Power confirm sellers remain in control, and the asset is in the lower part of its weekly range with volatility at 4.54%.

Rangebound outlook as consolidation persists without bullish technical confirmation

For the next five trading days, Meta is expected to trade within a range of $602 to $639, in line with current volatility. A sideways consolidation is the most likely scenario, as none of the four key weekly indicators support a bullish reversal. A break above $639 would be required for any rebound, while a drop below $602 could open the door to further declines if bearish momentum persists.

Parshwa Turakhiya, analyst, notes that Meta ended the week below key moving averages, confirming ongoing selling pressure while longer-term support holds above $456.28. He believes the company’s major restructuring and AI-focused pivot inject some sentiment-driven anticipation, yet technicals show bears still in control with negative momentum and weak trend strength. This week’s closing near $605.80 positions Meta at the lower end of its weekly range, reinforcing neutral to bearish sentiment as volatility remains elevated. Turakhiya sees sideways price action persisting between $602 and $639, with no clear evidence of a bullish reversal until major resistance breaks. "As long as Meta trades below $639, I’m staying cautious and watching for either a break lower or signs of renewed buyer interest."

Earlier, analysts noted that Meta was experiencing persistent bearish momentum and operational uncertainty due to workforce reductions and a shift toward AI-driven restructuring. The latest developments reinforce this cautious outlook, as ongoing selling pressure and neutral-to-bearish momentum indicators point to consolidation as the prevailing scenario, with $639 remaining a critical resistance level to monitor for any potential rebound.

Source of Data: META Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.