Key Takeaways
- Meta shares are holding steady as Facebook and Instagram parent prepares for its first-quarter report after Wednesday’s close.
- The stock formed two closely-aligned troughs in April. This could be setting the stage to a double bottom – a chart that indicates a bullish turn around.
- Investors should watch key support levels on Meta's chart around $482 and $452, while also monitoring important resistance levels near $588 and $632.
Meta (META), the parent company of Facebook and Instagram, held steady on Monday as it prepared to release its first-quarter results following Wednesday’s closing bell.
Investors will pay close attention to the social network’s ad-revenue outlook amid concerns that digital advertising spending in China may slow down as the U.S., and China, impose high tariffs on each other. Legal and regulatory disputes have nagged Meta, with the E.U. recently fining the tech giant for violating its Digital Markets Act and an antitrust trial getting underway in the U.S.
Meta shares were down 7% in 2025. However, they outperformed their Magnificent Seven counterparts over the same period. This was boosted by the significant investment made by the company in AI to drive advertising growth and user engagement in its suite of apps. In mid-afternoon Monday trading, the stock was slightly lower at $547.
Below, we examine Meta’s chart in greater detail and use technical analysis techniques to identify potential price levels for investors.
Double Bottom
Meta shares have formed two closely-aligned troughs in April. This could be the beginning of a double bottom chart pattern, which signals a bullish reversal.
The stock has recently experienced a pre-earnings rebound, with the price forming an doji during Friday’s session to signal indecision between buyers and sellers. The relative strength (RSI), on the other hand, shows neutral conditions with a reading near the 50-mark.
Let’s identify several important support and resistance levels on Meta’s chart.
Key Support Levels to Keep an Eye on
Investors are advised to first monitor the $482 mark. A pullback in this area will likely attract interest from buyers near the prominent April bottoms that form the double bottom pattern. This location is also in the same neighborhood of the 38.2% Fibonacci level when applying the grid from the February low to April high.
If the shares are sold below this level, they could fall to $452. This area could provide support near the swing lows that formed on retracements towards the 200-day moving median in July and August of last year.
Monitor important resistance levels
A pre-earnings bump may trigger buying at the $588 level. Investors might view this area as an excellent place to lock in profits. It is near a trendline which links the early April countertrend rally to a series of trading activity on the chart dating back to December last.
A close above this level will confirm the double bottom pattern, and could potentially trigger a move upwards to $632. Meta shares are likely to face selling pressure above this level near multiple peaks formed on the chart from December to March.
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As of the date of this article, the author did not own any securities listed above.
