Meta shows bullish momentum via gap-and-rise pattern and rising relative strength; key test is breaking resistance at 680-690.

So, I had a lot of interesting options , but I would choose Meta. Meta is the highest- rated stock in this sector according to Scooter's ratings.

Of course, last week in our " Market Replay" program we focused on a chart like this, where we addressed a key resistance level. If we look at what happened earlier this month, right?

We rose to the 200-day moving average, and then the price gapped above it . This is a classic pattern I call the " gap and rise" pattern, where the price rises above the resistance level, and then the price rises. This is a very positive sign , isn't it?

When the price rises with a price gap, one of two things can happen, right? Investors sell at this high point, eager to take profits from the high valuation. You saw that in January on the same MetaTrader chart , didn't you ?

A price gap followed by a sharp decline. That's not what we want, is it? When we see an upward price gap and then sellers, right? The day of the gap was the highest point, then we see a sharp decline . This is a very dangerous sign for the stock.

When I see that in the next couple of days, I immediately start thinking about this possible outcome, which is what happened with Meta when it hit its lowest point in March.

Now, compare that gap to the gap we saw here in early September, right? The gap and the sharp rise. This is a very encouraging sign, because despite the high share price, we are seeing additional buyers entering the market.

The stock rose by 3, 4 or 5% in two days with that large gap , but buyers came in and pushed the price higher . So, this is very encouraging.

But the challenge MetaTrader faced was breaking through a key resistance level, wasn't it? If we look at the April peak and the July peak, we will find that we are close to the same point, and that is why I think that breaking through the resistance level this week, which is between 680 and 690, is crucial.

After the significant rise we saw on Monday, today, Tuesday the 22nd, we are witnessing further accumulation. It looks like a good follow-up day . Therefore, I would say that Meta at this stage is a great example of the power of charts in the telecommunications services sector.

And frankly, this stock has been consistently underperforming for 12 months, has n't it? If we look at the period from August 2025 to August 2026, we will find that the relative strength was consistently low.

Then suddenly last month, the relative strength began to rise noticeably. I believe this shift is extremely powerful and highly significant. Therefore, Meta is certainly an example worth highlighting.