NEW YORK – Shares of Meta Platforms Inc. (META) finished the trading week on a decidedly negative note, slumping 1.51% to close at $682.87. The technology giant shed $10.49 per share in a session characterized by a sharp afternoon sell-off, leaving investors to ponder whether the downward momentum will carry over into next week.
The trading day, as detailed in the market summary, began with the stock opening at $687.95, below the previous close of $693.36. Despite an attempt to rally, which saw the price reach a high of $694.57 around midday, the sentiment turned sour in the afternoon hours. A steep decline began around 2:00 PM, pushing the stock to its daily low of $681.01 before it found a narrow trading range into the close.
Further slight pressure was observed in after-hours trading, with the stock ticking down an additional 0.047% to $682.55, indicating that bearish sentiment had not fully subsided by the end of the day.
The Case for a Continued Downturn on Monday:
Traders looking at the chart will see clear signs of weakness. The stock’s inability to hold its midday highs and the subsequent sharp, high-volume drop suggest that sellers took firm control of the market. Closing near the low of the day is often interpreted as a bearish signal, suggesting that the selling pressure has not yet been exhausted. If the stock opens on Monday and breaks below the key support level of $681, it could trigger further selling as traders look to exit their positions.
The Case for a Rebound:
However, bulls may see an opportunity in the decline. The chart shows that after the steep fall, the stock’s price stabilized and traded sideways for the final few hours of the session. This could indicate that the sell-off has run its course and buyers are beginning to step in at this lower price, viewing it as a discount. Furthermore, looking at the wider context, Meta is still trading significantly above its 52-week low of $442.65. Long-term investors may see this single-day drop as a “buy the dip” opportunity within a larger uptrend.
Outlook for Monday:
The stage is set for a pivotal session on Monday. Market sentiment will be tested right at the opening bell. Investors will be closely watching to see if Meta’s stock can hold the
682 support level established at the end of last week. A bounce from this level could signal a short-term bottom and a potential recovery. Conversely, a decisive break below this support could confirm the bears are still in control, potentially leading to a further decline towards lower price targets.
