Meta Platforms, Inc META was on the decline on Friday, falling almost 6% lower in sympathy with Snap, Inc SNAP, which printed worse-than-expected second-quarter earnings on Thursday after the market close.
Meta is expected to print its second-quarter financial results on July 27 and traders and investors have become spooked the social media giant will also report a miss.
Snap was so heavily beaten down prior to printing its earnings that many thought it couldn’t fall much lower. Snapchat’s parent company proved those traders wrong, however, because Snap opened Friday’s session down about 32%.
Meta has also been on a steep decline since the third-quarter 2021, plunging about 55% since reaching a Sept. 1 all-time high of $384.33, although more recently the stock looked to be reversing course.
Traders and investors will be watching closely to see how Meta fared during the second quarter amid soaring inflation and interest rate hikes, which have caused social media users to reduce spending.
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The Meta Chart: Meta reversed into an uptrend on July 1 and has since made a consistent series of higher highs and higher lows. The stock’s most recent higher high was printed on Thursday at $183.85 and the most recent confirmed higher low was formed at the $157.28 mark on July 14.
- When Meta pulled back on Friday, the uptrend remained intact. In fact, Meta can plunge an additional 8% lower before negating the uptrend, although bullish traders would prefer Meta closes the trading day above the eight-day and 21-day exponential moving averages.
- If Meta closes the trading day flat or near the high-of-day, the stock will print a doji or shooting star candlestick, respectively, which could indicate the next lower high is printed, and Meta will trade higher on Monday. If the stock closes the trading day near its low of day price, Meta will print a bearish kicker candlestick, which could indicate lower prices are on the horizon.
- Meta is trading closely to a support and resistance level at $173.09. The stock also has resistance above at $181.50 and $190.14 and support below at $164.20 and $154.25.
See Also: Snap’s ‘Ugly’ Results A Forewarning For Meta Investors? Munster Throws Light On Q2 Results