Short-term bearish on META due to technical resistance near 680-685 and expected pre-earnings pullback.

Your last one here is Meta. And Don, I have to say I do appreciate whenever you try to throw a bullish trade in there for us because I know you are a resident bear and that is your default.

So, it's always fun for me when you have one. But how are you looking at at Meta? Because I'm going to I'm going to bet you're going against the hype here with this name.

You know, I am. I I have a lovehate uh relationship with with trading Meta. It has nothing to do with the products, just a lovehate relationship with this with this particular product.

But at this point, this is very much a uh big-time technical kind of resistance, which Rick is uh going to display to you guys in just a moment. somewhere in or around this kind of 680 685 level um has been a big time kind of resistance and you know you can see the marketplace today fighting literally fighting right in and around that level.

Um I've also seen though some heavy call buying even this morning which is uh incredibly bullish activity in there but it faded and it faded very very quickly. So, all I'm going to do in this particular circumstance, I'm going to bear up, but just minimally, very short-term before its earnings, I'm just going to go out to the O9 O 9 expiration.

I'm selecting that simply because I want to trade this a little bit more in the here and now in the present. You know, giving myself, you know, three, four weeks is more than enough time for a little bit of a pullback.

And that's all I really need. So, Oct 9 expiration. I'm going to buy the 675 puts and I'm going to sell the 670 puts against it's just a $5 wide put spread looking for the underlying under 670.

This one's going for a 235 debit. It's very close to what I would term like kind of a risk one to be able to make one. But uh given the fact that Meta has been fairly volatile uh especially in this range, I I think that there's a decent probability of this uh playing out in the in just the next couple of weeks to come.

All right. And as I'm looking at that break even, it's just about $4 below where we're trading right now, Rick. Right now, we're at 676 and50 or so. Uh what are you seeing in the technical setup here in any of the levels that Don was just highlighting there stand out to you?

Right. So again, uh approaching an a significant resistance area after a sharp upside rally here. So I I believe probably what Don's referring to is these two highs that we saw again giving us this resistance zone.

So here between about 687 to 692 really stands out as an area to watch out for in this in this uh current situation here. We did break above our long-term downward sloping blue trend line.

Uh we did also break through this gap that was formed here near 659. So the gap has been filled. Uh so an interesting setup now to be sure here because if we were to break lower once again 638 to 626 is where we have another gap.

If we were to push higher above our resistance zone, we do we then have a a another prominent gap here and a high, a subsequent low, and another high there near 742. So, a lot of levels to keep in mind here.

Quite quite a gappy chart, particularly uh uh you know, noticing that there's a lot of very noticeable gaps here in this in this uh situation. So, our 5day EMA in dark blue 66014 uh is where that uh shortterm moving average would register here.

So, if we do start to break below our channel, that could be one point to watch for potential support. RSI also pushing into the over uh bought area, 72.8. So, RSI is often typically interpreted as a sign of strength to come in a trending market here.

But what I notice is that we're in kind of more of a rangebound area here. We have our repeated highs around this same area. We have repeated lows around the same area, too. So, that kind of would be probably the opposite read, then more like the name sounds.

It could be a sign that things are getting a little overheated uh as we approach the top of our range. We are near the point of control as well uh coming in at 65864. Our node in general 649 to 676.

All right. And meta right now is at 675.85. Uh trading close to a percent higher right now on the session.