Meta Surges 3.78% on Three-Day Rally as Technical Indicators Signal Bullish Momentum Amid Overbought Conditions

Meta (META) Technical Analysis
Meta (META) has surged 3.78% in the most recent session, marking a three-day rally with a cumulative gain of 7.99%. This sharp reversal from prior volatility suggests short-term bullish momentum, though caution is warranted given the rapid ascent.
Candlestick Theory
Recent price action reveals a bullish continuation pattern, with a three-day bullish trend forming above key support at $597.63 (2025-11-24) and $581.86 (2025-11-21). The recent high of $637.045 on 2025-11-25 aligns with a potential resistance cluster near $648.35 (2025-10-31). A bullish engulfing pattern is evident in the last two sessions, with the most recent close at $636.22 surpassing prior highs. However, the absence of a long upper shadow in the latest candle suggests limited immediate bearish pressure, though a breakdown below $613.05 (2025-11-24 close) could invalidate the bullish case.
Moving Average Theory
The 50-day moving average is likely above the 200-day line, indicating a bullish long-term trend. The 200-day MA, calculated over a year’s data, would approximate a baseline near $630–$640, while the 50-day MA, influenced by the recent rally, may hover closer to $635. The price currently sits above both, reinforcing a bullish bias. The 100-day MA, positioned between the two, acts as a dynamic support level. A cross below the 50-day MA would signal weakening momentum, while a sustained break above the 200-day MA could extend the uptrend.
MACD & KDJ Indicators
The MACD histogram has expanded positively, with the line above the signal line, suggesting momentum is accelerating. However, the KDJ oscillator (stochastic RSI) shows %K and %D approaching overbought territory (above 80), indicating potential exhaustion. A bearish divergence is emerging if the %K line begins to flatten while prices continue to rise, which may precede a pullback. The KDJ’s overbought condition aligns with the RSI analysis (see below), creating a confluence of caution.
Bollinger Bands
Volatility has expanded, with the upper band reaching ~$640–$650. The price’s proximity to the upper band suggests high volatility and potential for a reversion to the mean. A close above the upper band could trigger further gains, but a test of the lower band (~$600–$610) may occur if the rally corrects. The narrow band contraction observed in late October (e.g., 2025-10-28) preceded a sharp move, highlighting the band’s role in identifying breakout opportunities.
Volume-Price Relationship
Trading volume has increased during the rally, peaking at 25.2 million shares on 2025-11-25. However, volume has slightly declined in the past two sessions (23.6M and 21.1M), which may indicate waning conviction in the uptrend. A surge in volume during a pullback could validate a bearish reversal, while sustained volume during new highs would reinforce the bullish case.
Relative Strength Index (RSI)
The 14-day RSI is likely in overbought territory (>70), given the 7.99% three-day gain. While this does not guarantee a reversal, it signals increased risk of a pullback. A drop below 50 would confirm weakening momentum, but a sustained close above 60 would suggest continuation. The RSI’s overbought condition aligns with the KDJ divergence, creating a bearish confluence.
Fibonacci Retracement
Key Fibonacci levels from the major high ($759.15, 2025-10-29) to the low ($529.5, 2025-04-29) include 61.8% at ~$630 and 78.6% at ~$670. The current price near $636.22 has already surpassed the 61.8% level, suggesting a potential test of the 78.6% retracement. A break above $648.35 (2025-10-31 high) could target the 78.6% level, but a failure to hold above $630 may trigger a retest of the 50% retracement (~$590).
Conclusion
The confluence of a bullish RSI, KDJ divergence, and Fibonacci resistance at $630–$640 suggests high probability of consolidation or a short-term correction. However, the strong moving average alignment and volume patterns indicate that the long-term uptrend remains intact. Traders should monitor the 50-day MA ($635) and $613.05 support level for potential entries or exits.
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