Meta Platforms Inc. ($META) has recently shown notable market movements analyzed through Elliott Wave Theory. The stock underwent a 7-swing correction (WXY) after declining from its peak in June 2025, finding support between $700.47 and $677.50. An early 5-wave impulsive cycle concluded, leading to a pullback that analysts anticipated. Following this, the stock rebounded and is now on an upward trend, with expectations for more waves to follow this pattern. Current analysis indicates support against the April 2025 lows, focusing on the $762–$783 range as a potential target. Traders are advised to buy during dips and monitor pullbacks for entry opportunities, enhancing risk management through Elliott Wave Theory. A disclaimer urges investors to carefully consider their goals, experience, and risk tolerance before entering Foreign Exchange trading. The risk of loss is significant, and while this analysis aims to assist, it does not guarantee success. All content is protected by copyright, and unauthorized distribution can lead to penalties. We are currently witnessing the upward trend in Meta Platforms Inc., which was expected following the recent correction. The initial bounce has occurred, indicating that a new impulsive wave could be forming. This observation aligns with the technical structure suggesting a rebound after the stock stabilized. The recent pullback was largely influenced by the late April earnings report. Investors reacted to the raised capital expenditure guidance, despite a 27% increase in revenue year-over-year. The company’s forecast of spending $35-$40 billion on AI in 2024 has created short-term uncertainty. We view these dips related to spending as entry points that the analysis promotes. For derivative traders, this means considering buying call options during any weakness and targeting strikes near the identified zones for longer-dated contracts. Another strategy is to sell cash-secured puts or put credit spreads below recent support levels, such as the post-earnings low around $415, to collect premiums while targeting a favorable entry. This strategy takes advantage of the expected upward movement while managing risk. Implied volatility remains high following recent market events, maintaining elevated option premiums. This situation makes selling premium strategies, like the spreads mentioned, particularly appealing right now. For those buying calls, using debit spreads can help lower costs associated with this increased volatility. Historically, tech companies that have engaged in large investment cycles, such as Amazon’s early spending for AWS, often see their stock prices lag before experiencing significant long-term growth. We believe the market is currently following a similar pattern, digesting heavy investments before recognizing future growth potential. This trend supports acquiring positions during these uncertain times.

here to set up a live account on VT Markets now