BZ Chart Of The Day: Is Meta About To Breakdown?

Shares of Meta Platforms Inc. META may be about to form a new downtrend.

The stock is testing support. If the support breaks it could make a rapid move lower.

Support is a large group of buy orders that investors have placed close to or at the same price. As you can see on the following chart, there has been support for Meta around the $157 level.

Meta opened Tuesday, Aug. 2, at $158.18 per share. If a stock trades below a support level, traders say the support has been broken. This is typically a bearish dynamic. It shows that the investors who created the support have left the market.

With this large amount of demand for the shares taken away sellers will be forced to accept lower prices.

This could start a snowball effect and force Meta into a new downtrend.

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