Meta stock bulls may not have much time as the price has broken the bullish market structure, which had been intact since the start of 2023. The shares of the technology conglomerate gave tremendous gains to investors by rising almost 200% in 2023. However, it suffered a 14.2% pullback right after making a new yearly high at $325.
NASDAQ: META is up 2.09% and is standing at $306.2 on Thursday. This positive price action can be attributed to the recent recovery in US equities. The 10-Y treasury yield seems to be taking a breather after reaching a new 16-year high. As a result, the Nasdaq 100 index and the S&P 500 index gained 0.83% and 0.59%, respectively.
Meta In Hot Waters After Datatilsynet Calls For Permanent Ban
Back in July, Datatilsynet issued a temporary ban on Facebook and Instagram. The Norwegian data regulator accused Meta of illegally using the personal data of users for behavioral marketing. The data regulator is asking the European Data Protection Board to turn the temporary ban that expires on 3rd November into a permanent one.
In other news, Guggenheim increased their Meta stock price target from $375 to $380 while keeping their “buy” rating for Meta’s stock. According to Capital IQ, the shares of the technology conglomerate had price targets ranging from $100 to $435 with an average rating of “buy”
Meta Stock Price Forecast
As mentioned earlier, NASDAQ: META has broken its bullish market structure by making a new lower low on the daily timeframe. Currently, the stock is trading 33% above the 200 MA level of $231, which could be a potential bearish target in the coming months. After a remarkable run in 2023, Meta stock price prediction is not looking very bullish anymore.
I expect the price to see a 17% correction if it breaks below $275, which is a support level. A look at the chart also reveals that the 200 MA level lies very close to the 0.382 fib retracement level, which adds to the confluence.
