Watch These Meta Price Levels as Stock Hits Record Highs on AI Optimism

Yahoo

06-02-2025

Meta shares moved higher Tuesday after setting a record close yesterday, as investors bid up the stock in the aftermath of a solid quarterly earnings report and optimism about the company's AI-related growth opportunities.
The measuring principle projects a shorter-term bullish target at $755, while bars pattern analysis forecasts a longer-term upside target of around $935.
Investors should monitor major support levels on Meta's chart around $632 and $600.Meta (META) shares moved higher Tuesday after setting a record close yesterday, as investors continue to bid up the stock in the aftermath of a solid quarterly earnings report and optimism about the potential for AI-fueled growth.
Last week the Facebook and Instagram parent posted strong fourth quarter results, handily surpassing Wall Street's top- and bottom-line estimates. CEO Mark Zuckerburg lifted sentiment during the earnings call when he said that the early success of DeepSeek's AI model had strengthened the company's conviction in its own open-source AI large language model, Llama.
Meta shares have gained 20% since the start of 2025, making the stock the top performer over that stretch among the Magnificent Seven group of large-cap tech companies. The stock was up 0.9% at around $704 in recent trading and on pace to close at another record high Tuesday.
Below, we take a closer look at the technicals on Meta's chart and point out crucial price levels worth watching out for.
Meta shares trended higher within a six-month rising wedge before breaking out above the pattern's upper trendline last month on above-average volume.
Moreover, the breakout has coincided with the relative strength index (RSI) moving above the 70 threshold, confirming bullish price momentum, but also cautioning overbought conditions in the stock.
Let's apply technical analysis to forecast two potential bullish targets and also identify major support levels where the shares may encounter buying interest during pullbacks.
To project a short-term bullish target, investors can use the measuring principle, also known by chart watchers as a measured move.
When applying the technique to Meta's chart, we calculate the distance between the rising wedge's two trendlines near their widest section and add that amount to the initial breakout point. For instance, we add $100 to $655, which forecasts a target of $755, a location where the shares could see profit-taking.
Bars pattern analysis helps investors project a longer-term upside target by studying prior trends to predict how a future directional move may play out.
To apply the tool, we take the stock's trending move from January to March last year and overlay it from last month's breakout point. This projects a target of around $935, a region on the chart sitting about 33% above current levels where investors may look to lock in profits.
We selected this trending period as it immediately followed a breakout from an earlier rising wedge pattern on the chart, potentially setting a playbook for how a similar directional move may play out.
The first lower level to watch during pullbacks sits around $632. This location on the chart may provide support near the rising wedge pattern's lower trendline and the early-December and early- January peaks.
Finally, selling below this level could see Meta shares revisit lower support around the psychological $600 level. Investors may look for buying opportunities in this region near a horizontal line that links a range of comparable price points on the chart between October and last month.
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