Benzinga
Published Mar 21, 2022 16:07
Updated Mar 21, 2022 16:40
Facebook Parent Meta Platforms Reacts To This Bullish Pattern: How To Play The Trend
Meta Platforms Inc (NASDAQ: FB) has created double bottom and triple bottom patterns on the daily chart.
A double bottom pattern is a reversal indicator that shows a stock has dropped to a key support level, rebounded, back-tested the level as support and is likely to rebound again. It is possible the stock may retest the level as support again creating a triple bottom or even quadruple bottom pattern.
The formation is always identified after a security has dropped in price and is at the bottom of a downtrend, whereas a bearish double top pattern is always found in an uptrend. A spike in volume confirms the double bottom pattern was recognized and subsequent increasing volume may indicate the stock will reverse into an uptrend.
The Meta Chart: Meta formed a double bottom pattern at the $185.82 level on March 14 and March 15 and in reaction, the stock shot up 16.61% higher to reach a high of $216.80 on Friday. On Monday, the stock opened slightly lower and looked to be forming an inside bar pattern on the daily chart.
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