Chart Wars: Are the meta platforms, Twitter or Pinterest a stronger game after Snap dragged the band down?

0

Meta-Platforms, Inc Facebook, Twitter, Inc. TWTR and Pinterest, Inc. PINS fell around 8%, 2% and a whopping 17%, respectively, to start Tuesday’s trading day.

Social media stocks were trading lower in sympathy with Snap, Inc. INSTANTANEOUSwhich on Monday filed a Form 8-K showing that Snapchat’s parent company expected its second-quarter revenue to be below the lower range of its guidance released on April 21. The news caused Snap to plunge more than 40% during the day.

Investors are increasingly worried. Snap’s outlook for the second quarter is indicative of the broader industry as soaring inflation and rising interest rates appear to be slowing the economy, which will impact ad revenue as consumers limit their expenses.

All three stocks are trading in confirmed downtrends, making the upside potential short-lived for bullish investors due to the countertrend.

A rebound is likely to occur in the near term as Facebook, Twitter and Pinterest approach oversold territory and have printed lower lows, which are usually followed by a rise to print a lower high.

Technically speaking, Twitter seems the strongest of the three, due to its relatively low-key response to Snap news. by Elon Musk The shaky acquisition of the microblogging website makes Twitter a risky business from a fundamental standpoint.

It should be noted that events affecting the markets in general, negative or positive reactions to earnings prints and headlines can quickly invalidate patterns and breakouts. As the saying goes, “the trend is your friend until it’s not”, and any trader in a position should have a clear stop in place and manage their risk versus their reward.

Want direct analysis? Meet me in the BZ Pro lounge! Click here for a free trial.

The Facebook graph: Facebook’s current downtrend began on May 17, with the most recent low printed Monday at $196.99 and the most recent low formed at $187.87 on May 20. On Tuesday, Facebook was scrambling to print its next possible low at $176.11.

  • Price action may be the next lower low. At press time, Facebook was printing a doji candlestick on the daily chart. A doji candlestick, when formed at the bottom of a downtrend, can indicate an upward reversal in the charts.
  • Facebook has two gaps above its chart, with the first remaining on Tuesday between $183.68 and $191.24 and the second higher gap between $248 and $316.87. Gaps on the charts close about 90% of the time, making the stock likely to trade to fill empty ranges in the future, but the closest gap is most likely to close. to fill in.
  • Facebook has upper resistance at $181.50 and $190.14 and lower support at $173.09 and $164.20.

The Twitter graph: Twitter’s downtrend started on April 25th and the stock’s last lower high was printed on May 20th and at $38.29 and the most recent confirmed low was printed at $36.20 on May 19th . On Tuesday, Twitter printed another low, but because the low at $36.02 The level is so close to the last lower low that Twitter may have formed a bullish double-bottom pattern.

  • Like Facebook, Twitter was also trying to print a doji candlestick, which could indicate that an upward bounce is expected on Wednesday. If the stock can break above the most recent low on the next bounce, the downtrend will be reversed.
  • Also, like Facebook, Twitter has two gaps above its chart. The former is between $39.29 and $40.01 and the latter is between $42 and $43.33.
  • Twitter has upper resistance at $38.93 and $41.01 and lower support at $36.05 and $31.32.

twtr_may_24_0.pngThe Pinterest graphic: Pinterest’s downtrend took the stock to a new 52-week low at $16.14 on Tuesday, once again confirming that its downtrend is still intact. Pinterest’s most recent high low was printed on May 20 and at $23.58 and the most recent confirmed low low was created at $18.33 on May 12.

  • At press time, Pinterest was trying to imprint a hammer candlestick on the daily chart, which, like a doji candlestick, indicates that a rebound may be on the horizon. If Pinterest rises on Wednesday, traders can watch as the stock begins to close its closest gap between $18.69 and $21.94.
  • Pinterest has two additional top gaps, which are likely to close at some point in the future. The former is between $51.39 and $57.63 and the latter between $66 and $70.20.
  • The stock has resistance above at $19.04 and $22.08 and support below at $14.82 and $10.51.

pins_may_24.pngSee also: Why meta platform stock is crashing today

Share.

Comments are closed.