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    Meta shows potential for a corrective rally as the current cycle progresses in five impulsive waves.

    by VT Markets
    /
    Nov 18, 2025
    ### After the Five Wave Sequence We’re closely monitoring META as it approaches a possible support level while the decline that began after the October 29, 2025 high nears its end. The stock is currently in its last bearish wave. As long as the price remains below the $637.55 pivot point, we expect one more downturn. This final dip will complete the pattern and prepare us for a new upward movement. Since late October, this downward trend has mirrored a general hesitation in the broader market. However, the recent October 2025 CPI data came in slightly better than expected, which usually benefits tech stocks. Moreover, last week saw a significant increase in the put-to-call ratio for META options, a sentiment signal that often indicates short-term lows. This suggests that the market may be pricing in peak bearish sentiment. ### In the Short Term In the near term, we can employ strategies that take advantage of this last downturn. One option is to buy near-term put options to benefit from a drop below the recent low of $595.20. Alternatively, we could sell call credit spreads with a strike price well above the $637.55 pivot. This strategy lets us collect premiums while the stock starts to lose its downward momentum. Once we confirm the completion of this five-wave decline with a new low, we need to shift quickly to a bullish position to take advantage of the expected recovery. This likely means buying call options with expiration dates in December 2025 or January 2026, giving the rebound time to develop. For a more cautious approach, we might consider bull call spreads, which set defined risks for this potential upside. The anticipated rebound isn’t just a technical setup; it also fits with a more favorable landscape for growth stocks. With concerns about interest rates easing after last week’s inflation report, institutional investors may be looking for discounted entry points. A strong rebound after a new low would signal that larger players are re-entering the market. Create your live VT Markets account and start trading now.

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