Meta Stock Rises 3.51% Amid Bullish Signals And Key $745 Support Test

Meta (META) closed at $776.37 on August 4, 2025, posting a 3.51% single-day gain following heightened volatility, with technical indicators suggesting potential bullish momentum amid overbought risks and key support-resistance confluences.
Candlestick Theory
Recent candlesticks show bullish reversal signals. The August 4 session formed a strong bullish candle closing near the high ($776.85), recovering most of the August 1 bearish close ($750.01). This action establishes $745.31 (August 1 low) as immediate support, while resistance emerges at the July 31 peak of $784.75. The July 31 surge (+11.25%) and subsequent bounce off $745.31 suggest absorption of selling pressure, though failure to breach $785 would indicate consolidation.
Moving Average Theory
The 50-day moving average slopes upward at $704, aligning with the 100-day ($658) and 200-day ($592) averages, confirming a sustained long-term uptrend. Price remains above all three MAs, reinforcing bullish bias. Of note, the 50-day/100-day golden cross at $670 in May 2025 preceded accelerated gains, with no bearish crossovers currently evident. The alignment suggests robust trend support near $690–$700.
MACD & KDJ Indicators
The MACD histogram shows bullish momentum, with the MACD line crossing above its signal line in late July. However, this coincides with KDJ readings (K:78, D:73, J:88) in overbought territory. While bullish momentum prevails, the KDJ overextension signals near-term exhaustion risk. Divergence is minimal currently, though failure to achieve new highs amid elevated KDJ could foreshadow consolidation.
Bollinger Bands
Bands expanded sharply during the July 31 volatility spike (high: $784.75), indicating elevated volatility. Price now trades near the upper band ($780), typically signaling overbought conditions. The August 4 close within the bands (lower band: $738) suggests stabilization after extreme movement. Contraction below $765 would signal declining volatility and potential sideways action.
Volume-Price Relationship
Volume surged 40% during the July 31 rally, validating bullish conviction. The August 4 advance occurred on moderate volume (+28% above 30-day average), confirming buyer participation. Down days (e.g., August 1, –3.03%) saw lower volume, suggesting limited distribution. The volume-weighted average price (VWAP) for Q3 2025 anchors near $730, providing dynamic support.
Relative Strength Index (RSI)
The 14-day RSI at 68 approaches overbought territory (>70), though not yet signaling an exit. Gains have been stair-stepped without parabolic surges, reducing immediate reversal risk. The RSI’s higher low in late July versus price’s $745.31 trough shows positive divergence, indicating underlying strength. Caution is warranted if RSI breaches 75 without corresponding new highs.
Fibonacci Retracement
Applying Fibonacci to the primary uptrend from $475.73 (August 5, 2024 low) to $784.75 (July 31, 2025 high), key levels emerge. The 23.6% retracement ($711.82) held firmly during the August 1 pullback. Confluence exists here with the 50-day MA and VWAP, establishing $710–$712 as critical support. Resistance targets include the 1.618 extension at $912. The shallow retreat from $785 suggests bullish continuation above $780 may target new highs.
Confluence and Divergence
Strong confluence anchors the $710–$712 zone (Fibonacci 23.6%, 50-day MA, VWAP), while overbought signals cluster near $785 (price resistance, upper Bollinger Band, KDJ/MACD extremes). No major bearish divergence exists currently, though RSI/price non-confirmation would emerge if new highs occur amid declining RSI. Volume patterns align with bullish sentiment, though narrowing Bollinger Bands require monitoring for volatility contraction.