Meta Madness: Big Crash or Further Surge After the Mega Rise?

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Meta is a particularly intriguing stock that experienced a significant selloff at the end of 2021, with an overall pullback of 77%. Since then, however, we've witnessed an extraordinarily robust surge of 444%, which is remarkably strong. Yet, this rise came without any interim corrections, raising questions about when such a correction might occur. We've concluded our Wave I in September 2020 and have since formed an ABC correction, ending Wave II at $88.41. Following this, we've seen a rise to, and here's where it gets interesting, two possible scenarios: either an overshooting Wave (B)—note that this would mean Wave 1 isn't where it currently is, but rather at the Wave (B) level of $384. If Wave (B) precisely hits 138% at $496, which we've exactly reached without exceeding, this is where our concern lies. We'd like to see Meta invalidate this scenario by surpassing the $496 mark for a larger pullback to occur. Primarily, however, we're inclined to believe that we're heading into a Wave (2) correction, expected to lie between 50 and 78.6%, that is, between $288 and $174. Following this, the trajectory for Meta is anticipated to climb significantly, but this remains a scenario for the distant future.

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Ghi chú

It's always difficult, if not impossible, to call the exact top. Nevertheless, we are increasingly of the opinion that we have seen Wave (1) or Wave 5 at Meta, specifically at $523.57. We've reached the 100% level for the subordinate Wave 5, slightly exceeded it, but it shouldn't be further problematic, as there isn't really any good and strong visible correction at Meta. Therefore, we assume that we are now dealing with a downward movement, namely a Wave (2), which should typically be a flat structure. We are waiting for a three-wave movement downward to Wave A. We anticipate that this gap close might fall to the level of Wave (B) at $384.33, where we would end Wave A. Afterward, we should build out Wave B and then Wave C. We continue to believe that Wave C will eventually reach between 50% and 78%, which represents a significant downturn for Meta, but a downturn that has occurred even without COVID. Therefore, it's far from impossible for us, and one must view these limits as they are. If we exceed $523 again, we'll need to revise the analysis and extend Wave (1) further, although we must now say that Meta must undergo a stronger correction that lasts longer.
We stay patient with Meta