Mention “Meta Platforms” in 2022, and many would shudder.
Its stock price had fallen by 68% in 2022, and a string of bad news started to emerge.
Despite all the negative headlines, shares of Meta Platforms were resilient and climbed steadily in 2023, rising by almost 100%!
And there could be a swing trading opportunity in the coming week or so.
But before I share my analysis on Meta Platforms, I’d like to provide an update on the swing trading opportunity on Alphabet that was shared last week.
Instead of pulling back, Alphabet’s share price shot up due to renewed optimism in the stock market.
However, it looks like its share price is about to reverse, presenting a fabulous swing trading opportunity at ~$117.
Ok, let’s return our attention to Meta Platforms.
Performance Of US Stock Market vs Meta Platforms (META)
Why is the chart comparing the US stock market (S&P 500) and share price of Meta Platforms significant?
Before diving into any analysis, you’ll want to compare the stock in question to the S&P 500 to get a feel whether you stand a good chance of getting a higher returns than the market.
After all, all of us have limited resources.
Looking at the comparison chart above, it’s clear that the shares of Meta Platforms have been consistently outperforming the S&P 500.
In fact, the share price of Meta Platforms is in a strong uptrend while the S&P 500 has been very stagnant.
Therefore, the performance of Meta Platforms’ shares deserves a deeper analysis to determine if they’re truly worth a swing trade.
How Explosive Is Meta Platforms (META)?
At this stage, you’ll want to measure the up moves of Meta Platforms to determine if its up moves are worth your time and money.
Since Nov 2022, there’ve been 9 huge up moves. The smallest measures 5.8% and counting, while the largest measures 46.8%!
How remarkable is this?
Meta Platforms enjoys a mega market capitalization of nearly $630b, making it the world’s 8th largest company!
For such a mega company to enjoy a 46.8% increase in its share price in such a short period of time is incredible.
The shares of Meta Platforms have proven to be capable of forming explosive up moves, which is ideal for swing trading.
Key Price Levels
Knowing that the shares of Meta Platforms are capable of explosive up moves, making it an ideal candidate for swing trading, does this mean that you rush to buy its shares now?
No.
You’ll want to plot out its key price levels to help you make a more informed decision. Yes, these key price levels are also known as support and resistance zones.
I’ve plotted the immediate support zone of its shares at ~$243.
This means that if the share price of Meta Platforms falls soon, there’s a strong chance of it bouncing off the region of $243.
And when that happens, your chance of success increases. So, that’s the price area I’m paying close attention to.
The Strategy You Can Use To Swing Trade Meta Platforms (META)
After comparing the performance of META with the broader US stock market, determining whether META has experienced explosive up moves, and identifying its key price levels, it’s time to talk strategy.
To stay in business, you must know your entry, profit taking, and stop loss levels in every trading strategy. Yes, trading is a business, which means that your strategy must be well thought out.
Using The Art of Explosive Profits (AEP) framework, I’d like to see META pullback to $243 before considering an entry for a swing trade.
As the name implies, you’ll be looking to consistently catch an explosive move in a short period of time.
Instead of relying on news and hearsay, the AEP course will teach you how to screen stocks for swing trading like META.
You’ll also learn how to read charts and identify stocks that are about to make a big move.
Finally, you’ll learn how to identify the optimal entry, stop loss, and take profit levels to capitalize on these explosive moves (in a safe manner, of course)!
Can you apply the AEP framework to provide you with a side income while working full time?
Yes, you can!
Come, have a look at the AEP framework and incorporate this explosive trading strategy into your arsenal to capitalize on more swing trading opportunities.
Why Is Swing Trading META Worth It?
Meta Platforms has grown extremely quickly in the past decade, and hasn’t been shy about innovating.
After a torrid year in 2022, its share price rocketed in 2023, bringing many swing trading opportunities.
Having risen by more than 5%, a pullback should come real soon, and I foresee its share price reaching $243 for a swing trading opportunity.
While we wait for the pullback, please keep in mind that I’m not a financial advisor, so please treat this as edutainment and conduct your own research.
Lastly, all images are from pexels.com, pixabay.com, sectorspdrs.com, tradingview.com, and unsplash.com.
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