Meta: Future AI darling likely to drop to more affordable levels in the next few weeks. We will be accumulating
Elliott Wave Analysis | Meta CMP: 554 | Dt - 17th Nov'24
Simple Speak
Long Term - At AlgoChirp, we are very bullish on Meta. We believe the months ahead will offer excellent buying opportunities for long-term investors.
Short term - Based on our wave count, Meta has completed its Wave 1 advance, which began in October-November 2022, and is now poised for a Wave 2 correction. This correction is expected to bring prices below $400.
That said, once Wave 2 concludes, Meta is likely to embark on a multi-year, or potentially multi-decade, upward trajectory. Our Elliott Wave analysis suggests Meta could emerge as the biggest beneficiary of the upcoming AI boom. Time will tell how the narrative evolves.
For now, our strategy is to accumulate Meta at attractive levels. The $200 mark serves as the invalidation level for this bullish hypothesis.
Chart Speak #1 - Bird’s eye view
Chart Speak #2 - Shorter timeframe
Previous update on 29th Oct’24
Elliott Wave Analysis | Meta CMP: 578 | Dt - 29th Oct'24
Tl;dr - Our EW count for Meta is still on track. Per which, Meta, which had an extended Wave 3 impulse, is close to its Wave 5 termination. It appears an Ending Diagonal is playing out in Wave 5 and it should be followed by an A-B-C decline. It seems Meta Earnings or US Elections may end up being the catalyst.
Simple speak
A short term correction lies ahead for Meta. It should see the prices drop to $410 - $300 over the next few months. Expect the news and the narrative to become negative
Once this retracement is complete, it should see a dramatic rise as it will start its Wave 3 advance.
It seems the Ending Diagonal pattern is headed for a climax around Earnings or US Elections. There is a possibility that one of these events pushes the higher and stock out of the channel, before it falls dramatically.
Chart speak
Detailed analysis from the previous week below
Previous update - 14th Oct’24
Tl;dr - Meta, which had an extended Wave 3 impulse, is close to its Wave 5 termination. It appears an Ending Diagonal is playing out in Wave 5 and it should be followed by an A-B-C decline.
Key Highlights - EW Analysis by AlgoChirp
Wave 5 of an impluse that started in Sept 23 is close to its termination.
Target 1 & 2 for this 5th Wave are highlighted in the charts below
Wave 5 appears to be forming an Ending Diagonal. Internal count for this Diagonal are not super clear but it still seems like a high probability setup.
The sluggish nature of price movement is typical of a Wave 5 advance.
Alternate count - At this pt there is no strong alternate wave count. If RSI breaks the weekly trendline convincingly then we will need to relook at this count.
Chart #1 - Weekly
Chart #2 - Daily
Analyst Rating vs EW count
Long Term - In sync with EW count
Short Term - Not in sync with EW count
