There is no such things as "down too much" when there are still sellers$META is less than 10% above the volume weighted average price it has traded at since its IPO 10 years ago. I would bet MOST people are losing money on the stock
Level of interest, at AVWAP IPO & prior low pic.twitter.com/amxGFbHaGR
— Brian Shannon, CMT (@alphatrends) October 11, 2022
Today’s Chart of the Day was shared by Brian Shannon (@alphatrends). It’s a monthly candlestick chart of the company formerly known as Facebook ($META). This stock was worth over a trillion dollars at its peak just 13 months ago, but it’s lost more than two-thirds of its value since then (-66%). Brian points out that it’s approaching a confluence of potential support around $119-$123. This level represents the 2018 lows and the VWAP from its IPO. You can think of the VWAP as the average cost basis for investors since its IPO in 2012. If $META fails to hold this key level, it would likely make matters worse, as underwater investors throw in the towel. Either way, keep an eye on how this former market darling behaves around this key level in the coming weeks.