Meta Stock Surges 3.16% To $687.95 On Strong Bullish Momentum

Meta Technical Analysis
Meta (META) closed at $687.95, gaining 3.16% on June 4th, 2025, on elevated volume of ~14 million shares, indicating strong bullish conviction near current levels. The analysis below synthesizes key technical perspectives.
Candlestick Theory
Recent price action shows constructive patterns. The June 4th session formed a large bullish candle closing near the high ($689), absorbing supply at the $668.57 low. This follows a Hammer reversal on May 12th (low: $621.03, close: $639.43) after earnings volatility. Key resistance is now evident at the psychological $700 level, previously tested in February 2025. Support converges near $640-$650, aligning with the May consolidation zone and the 50-day moving average. A break above $700 could trigger acceleration, while failure to hold $640 may signal profit-taking.
Moving Average Theory
The 50-day MA (~$635) crossed bullishly above the 200-day MA (~$570) in mid-May, confirming a long-term uptrend. The 100-day MA (~$615) provides dynamic secondary support. The shorter 50-day MA has consistently guided prices higher since April, with the June 4th close well above all three averages. This configuration suggests sustained bullish momentum, though stretched short-term extensions (price >8% above 50-DMA) warrant monitoring for mean-reversion signals.
MACD & KDJ Indicators
The MACD histogram shows fading bullish momentum since its March peak, though remains above its signal line. A potential bearish crossover looms if momentum weakens further. KDJ presents conflicting signals: the %K line (72) is overbought, while %D (65) trends downward, suggesting near-term consolidation risk. Notably, KDJ divergence emerged in May – prices made higher highs while KDJ formed lower highs, warning of weakening upside thrust. These oscillators align in suggesting consolidation is probable before sustainable new highs.
Bollinger Bands
Volatility contracted significantly in late May (bands narrowed by ~10%), preceding the June breakout. Prices now ride the upper band (~$690), indicating near-term overextension. Historically, such band expansion phases see temporary pullbacks. The midline (~$640) offers immediate support. Continued upper-band tagging without consolidation may lead to a volatility spike – likely through sharp profit-taking rather than sustained upside.
Volume-Price Relationship
Breakout days (e.g., May 12th +7.92% on 21.9M shares, June 2nd +3.62% on 15.8M shares) featured robust volume confirmation, validating accumulation. However, the recent push to $689 occurred on lower volume (~14M vs. May’s 18M+ peaks), raising sustainability concerns. Distribution patterns were absent during pullbacks (e.g., May 23rd’s -1.49% decline saw below-average volume), supporting the underlying bid. A close above $700 requires volume expansion to confirm legitimacy.
Relative Strength Index (RSI)
The 14-day RSI sits at 63, retreating from an overbought reading of 73 on June 2nd but maintaining bullish territory. While not oversold, this cooldown creates space for renewed buying pressure. The bearish divergence noted in May (higher price highs, lower RSI highs) persists, advising caution against chasing extensions. RSI respects its mean (40-60 zone), suggesting equilibrium; a decisive break below 50 could signal a deeper retracement.
Fibonacci Retracement
Applying Fib levels to the major rally from the August 2024 low ($450.8) to the February 2025 high ($737) reveals key thresholds. The 38.2% retracement ($626) underpinned the April-May consolidation, while the 50% level ($594) marked the Q1 trough. Current prices test the significant 61.8% retracement resistance (~$669), aligned with the June 3rd high. Conquering this decisively opens the path to $700 and beyond. Conversely, failure here could see a retest of the 50% support near $590-$595.
Confluence & Probabilities
The $700 resistance aligns with the 61.8% Fib level and a psychological barrier, making it a critical tactical pivot. Strong confluence exists at $640-$650 (50-DMA, volume support, Bollinger mid-band), which could attract buyers during dips. Divergences (RSI, MACD) and weakening breakout volume suggest a near-term consolidation or pullback is increasingly probable before another significant leg higher. A confirmed break above $700 on high volume would negate bearish divergences and target the $740 all-time high. Conversely, failure below $640 could trigger a deeper correction toward $595-$600 support.