META technical rebound tests key support, the battle between AI investment and stock price

Meta's stock closed at $593.00, down 5.51% for the day, with technicals entering a critical observation period. Regarding the moving average system, the 50-day and 200-day moving averages remain in a bullish alignment, and the medium-term trend has not been broken, but recent candlesticks have tested the short-term moving average support. The RSI has significantly retreated from previous highs, approaching the neutral zone around 50, and the Bollinger Bands show the price oscillating widely between the upper and lower bands, indicating a lack of a clear short-term trend direction.

Support levels are concentrated around $580-$590, which is the lower boundary of the consolidation range since May. If broken, it will test the previous breakout level at $560. Resistance is in the $600-$610 range, near the upper Bollinger Band, which is a supply zone. A volume breakout is needed to see prices extend above $630.

Although the fundamentals remain positive with Meta's AI investments and Reels ad growth maintaining a good momentum, and there are expectations for the commercialization of large models, the technicals suggest that a consolidation in the $580-$600 range is the most probable short-term event. I will wait for a clear volume breakout above $610 before considering a long position on the right side; otherwise, the risk-reward of a light long position near support is not high.

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