META shares weekly forecast: Downside momentum holds as MACD and Awesome Oscillator stay negative

Traders Union
All News
Stocks
Meta platforms slips 1.38% this week

Highlights

Shares of Meta Platforms fell 1.38% over the past 7 days to $606.74, trading below key moving averages.
Downside momentum remains strong, but oversold indicator signals raise the risk of near-term selling exhaustion and possible rebound.
Price action is contained between support at $606.41 and resistance at $632.01, with a projected weekly range of $594.1 to $619.37.

Capital expenses outweigh revenue gains as funding moves reshape outlook

Meta's Q3 2026 earnings release on October 21, 2026 revealed strong revenue growth and robust investment in artificial intelligence, but also highlighted rising expenses and high capital expenditures, according to CSIA Market Analytics. S&P Global Ratings revised its outlook on META to negative over concerns about high capex and weaker free cash flow, CNBC reported. In response to its funding needs, META is preparing a potential investment-grade bond offering targeting at least $20 billion and has launched approximately $35 billion of public offerings alongside a planned $60 billion at-the-market equity program, as reported by Bloomberg and Digitimes.

Downside momentum persists as oversold signals warn of exhaustion risk

On the daily chart, Meta shares are tracking a sustained move lower with a firm trend, underpinned by a 4.66% weekly volatility. The CCI and Stochastic RSI are both in oversold territory, with CCI at -104.68 and Stochastic RSI at 5.58, highlighting a possible risk of selling exhaustion and short-term rebound potential. However, the MACD and Awesome Oscillator are both negative, confirming clear downside momentum. Price action is pinned to support at $606.41, with resistance visible at $632.01 from the 200-day moving average and the Ichimoku Kijun acting as further overhead resistance.

Deeper declines favored unless support holds in coming week

In the week ahead, the expected range is $594.1 to $619.37, with a 21% probability of an increase and a 79% probability of a decrease. The base case sees price stabilising between immediate support at $606.41 and resistance at $632.01. A break above $632.01 would signal scope for a short-term rebound, while a drop below $606.41 would increase the risk of a deeper decline towards $594.1.

Sholanke Dele, Market Strategist, sees Meta stock under continued pressure this week, with shares hovering near $607 after a 1.4% decline. He notes strong revenue growth and robust AI investment from Meta’s Q3 2026 report, but the market remains wary of surging capex, rising expenses, and weakened free cash flow. Technicals show Meta shares are now in oversold territory, yet downside momentum dominates, and support at $606.41 is in focus. The base case is stabilization between $606.41 and $632.01, but Dele warns that sustained trading below $606.41 could trigger further losses toward $594.1. "Until shares reclaim $632.01, I remain cautious and see little reason for optimism this week."

Previously it was reported that analysts saw ongoing downside pressure for Meta Platforms due to persistent technical weakness and concerns about rising AI-related expenses. Building on this, the current analysis highlights the importance of the $606.41 support level, with sustained downside momentum suggesting that a break below this threshold could expose Meta shares to an extended move lower toward $594.1 in the coming week.

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.