Chart of the Day - Tuesday, October 11th, 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.