Position entry

META extended the bounce from 540-550 into the broken ascending trendline around 680-690, then reversed sharply. If META cannot stay green while the sector and broader indices are in the red, the narrative around its recent entry into the LLM race is unlikely to keep the stock afloat.

META followed through on last week’s rejection from the broken ascending trendline around 680-690 and has now fallen back toward 600. META’s entry into the LLM race failed to keep the stock afloat once the broader tape weakened.

As I warned two weeks ago, the premise for META printing a new ATH on the back of its entry into the race was that the broader semiconductor sector would not collapse. That premise is now breaking down.

Unless META moves back above 680-690, the path of least resistance remains toward the ascending trendline around 540-550. A sustained break below that support would confirm another leg lower.