Meta Platforms shares jumped on Friday amid a broader market rally, after logging their biggest one-day drop since July the previous session.
Meta is the only member of the Magnificent Seven group of mega-cap technology stocks to be in positive territory so far this year.
Investors should watch major support levels on Meta’s chart around $535 and $460, while also monitoring crucial resistance levels near $635 and $740.
Meta Platforms (META) shares jumped on Friday amid a broader market rally, after logging their biggest one-day drop since July the previous session.
The social media giant’s stock has come under pressure over the past month as the broader market has tumbled, with Big Tech stocks suffering outsize losses amid concerns about lofty valuations and slowing growth. Meta shares are down 18% from their record high set in mid-February.
However, Meta is the only member of the Magnificent Seven group of mega-cap technology stocks that remains in positive territory for 2025. The stock is up nearly 4% since the start of the year, while each of the other Mag 7 stocks is down at least 8%.
Below, we break down the technicals on Meta’s chart and identify major price levels worth watching out for amid the possibility for further price swings.
Meta shares staged a decisive breakdown below an ascending channel on Monday before the price retested the pattern’s lower trendline in Wednesday’s trading session. Bears used the bounce as an opportunity to accelerate selling yesterday, before today’s recovery.
Meanwhile, the relative strength index (RSI) confirms weak price momentum with a reading near its August lows, though looming oversold conditions may trigger short-term recovery rallies in the stock.
Let’s use technical analysis to locate major support and resistance levels that investors may be monitoring.
Meta shares rose 3% on Friday to close at $607.60, after falling nearly 5% yesterday.
The first overhead level to monitor is $635, an area that provides a confluence of resistance from the ascending channel’s lower trendline that sits alongside peaks which formed on the chart in December and January.
A convincing close above this level may see bulls make another run at the $740 level, a location on the chart where Meta shares would likely attract significant attention near their all-time high (ATH).
The first support level to watch sits around $535. The shares could find buying interest in this area near a multi-month trendline that connects three prominent peaks on the chart between April and August last year.
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