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Dissecting price action with 3 critical Trading Central analytical tools

By

Luis Leon

on

October 28, 2022

Today's news is rife with social media giants. While Twitter ($TWTR) is being delisted today following Musk's successful acquisition last night, investors have shifted their focus to Meta ($Meta). The owner of Facebook, WhatsApp and Instagram reported sinking earnings this week, causing Mad Money's Cramer to apologize for wrongly assuming positive momentum back in June and CEO Zuckerberg's net worth to slump 100 billion in only 13 months. 

We took a look within our analytics to see what this might mean for the stock:

TC Market Buzz is detecting strong negative news sentiment around popular Tech stocks

Created with Trading Central’s proprietary, analyst-trained natural language processing and sentiment algorithm, the sentiment score indicates how the crowd feels about a particular stock. Today, we can see Meta Platforms’ sentiment is very negative. The high confidence level indicates this sentiment is felt across a large number of social media, news and blog sites. 

The subjectivity index, which measures how rational the crowd’ opinion of the stock is very high suggesting the psychology of traders in META may be irrational. 

Regarding the total news sentiment, the volume of news sentiment backing the sentiment score is high which means we have high confidence in the scoring.

Digging in to TC Fundamental Insight, we see a very weak momentum rating due to bearish price momentum. 

Meta platforms (META) is down a whopping -70.3% YTD.

The intraday trend outlook is also negative according to TC Technical Views,  where we see a potential decline towards the $85.50- $85.60 price range. 

The investment ideas presented here are for information only.  They do not constitute advice or a recommendation by Trading Central in respect of the investment in financial instruments. Investors should conduct further research before investing. Learn more.

Luis Leon

Fundamental Analyst
Luis graduated from the University of Ottawa with a Bachelor of Commerce, specializing in Finance and has completed level 1 of the CFA. Luis participated in an international exchange program with the University of Chile in Santiago where he studied Strategic Alliances, Mergers & Acquisitions and Trends & Challenges in Latin American Markets. Luis joined Trading Central in 2021 as an Analyst to assist the team in stock picking, research and commodity futures/forex analysis.
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