Meta Platforms Inc. ($META) was reviewed after reaching previously marked blue box support zones. Price rebounded from these zones, keeping the bullish wave sequence in place while the stock stays above the invalidation level.
The earlier outlook identified the blue box area as a likely end point for the correction. Subsequent price action showed a firm reaction there, followed by a rally.
Blue box areas are used in Elliott Wave analysis to mark extreme levels where corrections often end. In this case, selling pressure eased after support was tested, and price turned higher rather than breaking down.
The update states that $META completed a corrective leg into the blue box zone at 528.43–394.14. The bounce from that area is presented as evidence that wave (II) may have ended and a new upward leg may be starting.
The key level referenced is the March 30 low at 520.26. The outlook allows for short-term pullbacks, but treats them as corrective as long as price holds above 520.26.
The technical summary reiterates that support held in the blue box zones, resulting in a rebound. It adds that further upside remains possible while 520.26 is not broken.
The recent bounce in Meta confirms the bullish sequence we were tracking. This suggests initiating bullish derivative positions is now timely, using the March 30th low of 520.26 as a clear line in the sand. As long as the stock holds this level, the path of least resistance appears to be upward.
For those looking to collect premium, selling out-of-the-money put credit spreads is an attractive strategy. We are seeing implied volatility settle, with IV rank now near 35%, making selling premium a reasonable approach. A short strike placed below the critical 520 support level would align directly with this technical outlook.
Alternatively, traders anticipating a stronger move higher could consider buying call debit spreads to define risk and lower costs. Recent options data supports this, showing a surge in call buying for the May and June 2026 expirations over the past week. This indicates growing market conviction in a continued rally following the successful test of support.
This technical strength is supported by a strong fundamental backdrop, as preliminary reports for Q1 2026 show digital ad spending rebounding from the slowdown we saw in 2025. Furthermore, continued positive sentiment around the company’s AI initiatives is providing a persistent tailwind for the stock. This aligns with the idea that the recent dip was a consolidation rather than the start of a new downtrend.
This price action is reminiscent of the pattern observed in late 2024, when the stock also completed a corrective pullback before resuming its primary uptrend. In that instance, the subsequent rally was both swift and significant. Therefore, we should view any minor pullbacks in the coming days as buying opportunities, provided the 520.26 low remains intact.
