The price of Meta Platforms gapped sharply lower following its April 29 earnings release, as investors reacted negatively to the company’s increased capital spending plans — a development that triggered aggressive selling pressure. On the day of the earnings reaction, the stock fell decisively below its 100-hour moving average, 100-day moving average, and 200-hour moving average, signaling a significant deterioration in the technical picture.
Since that break lower, the stock has attempted several corrective rebounds, but sellers have consistently regained control at key technical resistance levels. On both April 30 and again on May 7, rallies stalled near the 200-hour moving average, reinforcing the bearish bias. The May 7 rebound also failed near the 38.2% retracement of the rally from the March 27 low, which came in at $626.10. The high price that day reached $624.98 before rotating lower. The inability to break above both the 38.2% retracement and the 200-hour moving average gave sellers the green light to reassert downside momentum.
On Friday, the decline found temporary support near the 50% retracement level at $605.89, with the stock closing at $610.25. However, in today’s trading, the stock gapped back below that midpoint level. The rebound high reached just $604.91 — roughly one dollar short of the broken 50% retracement — allowing sellers to lean once again against former support turned resistance.
From a technical perspective, buyers need to reclaim the $605.89 level just to gain a modest short-term foothold. Beyond that, the hurdles become much more difficult. The stock would still need to move back above the broken 38.2% retracement at $626.10 and the rising 200-hour moving average near $630.92 to shift control away from sellers. Ultimately, the 100-hour and 100-day moving averages near $641 remain the larger upside targets that buyers would need to retake to improve the broader technical outlook.
Until those resistance levels are reclaimed, sellers continue to hold the stronger hand technically. While short-term rebounds remain possible, the path of least resistance still points lower unless buyers can begin to chip away at the growing list of overhead resistance levels between $605 and $641.