Meta Stock Oversold Again: RSI Signals a Potential Rebound

Meta's recent selloff has pushed the RSI down to around 28.4, marking the first time it's been this oversold since 2023. Looking at the chart, every time the RSI has dipped below 30—highlighted by blue arrows—Meta bounced back almost immediately. Out of six instances since 2022, five resulted in quick reversals and multi-week rallies. The only exception, marked with a red "X," saw a slightly deeper dip before the stock resumed its uptrend. With shares currently around $657, traders are watching to see if this oversold signal will once again mark a turning point.

Key Takeaways from the Chart

Meta Platforms (NASDAQ: META) just hit oversold levels again, and if history is any guide, that could mean good news for the stock. According to trader Heisenberg, Meta's Relative Strength Index (RSI) on the daily chart has fallen below 30—a threshold that has repeatedly sparked powerful recoveries in the past. The big question now: will the pattern hold once more?

• Oversold RSI as a reversal signal: The chart shows six prior RSI readings below 30, and five of those led to immediate rebounds—even during broader market weakness. This consistency suggests that when Meta hits oversold levels, buyers tend to step back in quickly.
• Current technical backdrop: Meta has pulled back sharply from highs above $700, settling into the $640–$660 range—a zone that has historically acted as support. The RSI drop below 30 signals short-term selling exhaustion, and if it climbs back above 30 soon, it could confirm the start of another recovery phase.
• Long-term trend still intact: Despite the recent decline, Meta's overall trajectory remains bullish. The stock has been making higher highs and higher lows since late 2022, and it's still trading well above its long-term moving averages. This pullback looks more like a healthy correction than a structural breakdown.

Why a Rebound Makes Sense

Meta's oversold reading comes as the broader tech sector stabilizes after weeks of profit-taking. Fundamentally, the company remains a powerhouse in AI-driven digital advertising and social media infrastructure. Revenue growth from Reels, WhatsApp, and AI ad tools continues to support the long-term story. With fundamentals solid and sentiment stretched to the downside, a technical bounce from these oversold levels seems likely—just like we've seen before.

The chart tells a pretty clear story: when Meta's RSI drops below 30, a sharp upward move usually follows. While past performance doesn't guarantee future results, the odds favor a rebound—especially if the RSI turns upward and the stock holds above support near $640.

For patient investors, this setup offers a familiar opportunity: when the RSI hits the 20s, it's historically been a buy signal, not a reason to panic. If momentum returns as it has in previous cycles, Meta could quickly recover toward the $700–$725 range in the coming weeks.