Chart of the Day: META 'Bright Spots'

0:00We're back on warning, Movers meta is lower in the pre market and looking to extend yesterday's sell off after multiple courtroom losses. A new Mexico court found meta liable for misleading consumers about the safety of its platforms and endangering children while a Los Angeles jury found both meta and alphabet Google liable and a social media addiction case. Just meta fallen more than 15% in 2026. Time now for our chart of the day, joining us for a breakdown is Brett Crowder, senior managers trading and derivatives coaching Charles Schwab. Brett, it's good to see you this Friday. This is clearly the status update that meta didn't want to see. You've got to look at a short term chart first. Let's dive into it. Yes, good morning day. I'm going to be with you on a Friday, but meta is not having a good Friday just yet. If we look at that short term chart, the 10-day 15-minute chart, we're going to see as I drew in a channel, which is identified by those blue lines. For the last 10 days, it's been pretty much handling a methodical decline. It's been dropping, yes, but it's been doing in this kind of a sustained methodical manner. What I'd also put

1:03in there is a 50% coefficient of that channel. I always find interesting how that 50% coefficient can quite often act as kind of an intermediate or a sub-support and resistance level. Through the last 10 days, we can see how many times that stock bounced off, either as support or resistance as it made the steady decline. Now, all that kind of went out the window yesterday when it dropped over 8%, very significant drop. As some of that news, you just mentioned came out and the stock really took a hit. Not only breaking through the red line, but the blue line and really going into a really lower territory for this stock. Now, it did find some short-term support, or should we say, it stopped falling around the 545 level in early trading this morning and made a slight bit of a rally. I wanted to come back down a little bit lower. Now, here's what's interesting. If we look at the volume profile to the right, we can see interest was starting to wane as it dropped down. As it got closer to 545, we started to see it build back up again. Potentially, investors are looking at this as, hey,

2:05it's dropped 10% from a few days ago, it's starting to be less expensive, which often can bring investors back into a stock. And so there's some potential for a bounce in this area. And with that lower low on the price action, but if we look at the indicator, it's making a higher low. We're getting that bullish divergence again, a squeeze, a potential pop could happen here. As bullish pressure starts building on this stock, as price continues to drop. Something's got to give, either the indicator has to drop back down, the price has to pop. And so there is a potential for a rally, maybe pulling back and recouping some of yesterday's losses. And so from a short-term interday perspective, there could be some bright spots for this stock, but will that spell in the longer-term? Well, let's talk about that, I guess, day in. Well, it's complicated. All right, let's zoom out to a longer-term chart. What does that look like? Yes, a longer-term chart. It's a little different story. So there's three components that I've put in here, two channels in a trend line. So let's take them left to right.

3:07The first one is a channel on the left-hand side, which Meta was having a pretty good rally back May, June, July, August, September. But, you know, is a pretty steep rally, a pretty steep run. And when I'm on a treadmill and I have a steep incline, I can't stay out of that long. You know, stocks are no different. They run out of breath and they drop down. And so then it fell into more of a sustained channel. There's a little less steep and could last a little bit longer. And that was going well until about a week ago when it broke through support around that 620. And really has been in more of that freefall down to long-term gray line, which is a trend line that comes off as support for a three-year weekly chart. And so that's the next support level that's stocking potentially fine. So let's talk about the good and the bad. Well, it has been in a drop. It is now from the intraday chart possibly finding, you know, some bullish action that could rally from this point. However, on the daily chart, it's not quite there yet. It hasn't found that long-term support. And if we look at

4:07the RSI on the longer-term chart, it's dipping down to the lower versus zone. Now quite often, when it dips into that lower versus zone for the first time, that's not it. It's the first taste of that area. And it'll quite often make a rally fund there and fall back down. And so on the short-term possible rally, long-term, not there yet. And it may need a little bit more time to finally find that support. And so it looks like a bit of pride is the weekend more than any of us, Dan. Yeah, hi, indeed. All right. Thank you, Brad. That's Brett Crowder, Senior Manager of Trading and Derivatives, coaching Charles Schwab.