Meta is doing pretty well, and not only that, it has outperformed its own sector by more than 20% over the last two months or so.
It has also outperformed the S&P 500 by more than 17%, which is quite impressive, especially if we consider that the communication services sector has been lagging a bit, although not as much as some other sectors like industrials, materials, and financials. Of course, energy and technology are in a league of their own this year.
But overall, if the communication services sector also starts to pick up, then we can expect Meta, which is already performing very well, to extend even higher.
Meta vs sector and S&P 500 relative strength
In fact, looking at this stock from an Elliott Wave perspective, we can see that the price has broken out of the recent triangle, which looks like it could be completed. Price recovered towards $700, and we saw a very sharp and strong recovery. So after some pullback, which could already be playing out now, we could see even more gains. What I would be looking for is support around $692, the previous breakout point. If more aggressive selling occurs in the near term, then $712 is also an important level to watch, as it marks an unfilled gap from mid-September.
Meta daily Elliott Wave chart
So it’s very possible that we will see another push higher in the next few weeks, but who knows, maybe we will have to wait until the next earnings release, scheduled for Wednesday, October 28. Overall, this looks like a bullish, constructive pattern, and new highs could still be coming in wave five, closer to $850, maybe even $900, as long as the market trades above the $500 level.
Highlights:
Meta outperforming its sector by more than 20% and the S&P 500 by over 17% in the last two months
Elliott Wave triangle appears completed, with a strong bullish breakout
Watching support near $692 and the mid-September gap around $712
Next earnings release scheduled for October 28
Potential wave five targets around $850–900
Bullish outlook remains valid above $500
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Twitter: @GregaHorvatFX
The author may have a position in the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity .
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