4 Trade Ideas for Meta Platforms: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

Meta Platforms, $FB, broke out of a descending triangle in March and continued higher to a top at the beginning of September. It pulled back from there, first to the 200 day SMA and then to the 50% retracement of the move higher, where it found support. It has been round up out of that bottom and ended last week at resistance. The Bollinger Bands® have shifted to pointing higher.

The RSI is on the edge of a move into the bullish zone over 60 with the MACD now positive and rising. There is resistance at 347.50 and 354 then 359.50 and 364.50 before 374.75 and 382.50. Support lower comes at 337.50 and 327.75. Short interest is low at 1.1%. The stock does not pay a dividend and the company is expected to report earnings next on January 25th.

The December options chain shows the biggest open interest at the 330 strike on both the put and call sides. January options show 330 as the biggest put strike as well but second on the call side to the 350 strike. February options cover the earnings report and have biggest open interest at the 300 and 350 put but much bigger at the 310 call.

Meta Platforms, Ticker: $FB

Trade Idea 1: Buy the stock on a move over 348 with a stop at 338.

Trade Idea 2: Buy the stock on a move over 348 and add a December 345/330 Put Spread ($6.00) while selling a January 385 Call ($6.10).

Trade Idea 3: Buy the December 330/350/380 Call Spread Risk Reversal ($1.70).

Trade Idea 4: Buy the January 325/350/380 Call Spread Risk Reversal (free).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the November options expiration in the books, saw equity markets looking mixed with large caps and tech strong but small caps showing weakness.

Elsewhere look for Gold to continue its move higher while Crude Oil pulls back in its uptrend. The US Dollar Index continues to look strong with more upside while US Treasuries consolidate. The Shanghai Composite looks to consolidate as well while Emerging Markets pullback in a bull flag.

The Volatility Index looks to remain low but rising giving equity markets little to worry about. The charts of the SPY and QQQ look strong on both timeframes but especially on the longer timeframe. The IWM however is looking weak and at risk for a breakdown on both timeframes. A reversal early next week could fix that quickly though. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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