Saad Ullah
Meta Platforms (NASDAQ: META) is sending out a pretty significant technical signal right now. The stock has hit its most oversold level since April, and it's doing this right as it's testing what traders call the Point of Control zone. This combination has a lot of people watching closely to see if we're about to get a bounce or if there's more downside ahead.
Oversold Signal Draws Trader Attention
A recent observation from Trend Spider pointed out something interesting: $META has reached its most oversold condition since April, and it's happening right as the stock touches the Volume Point of Control near $710. When you get this kind of alignment between momentum indicators and volume-based support, it tends to catch the attention of both technical traders and longer-term investors.
Looking at the daily chart, there are a few things that stand out. The RSI is sitting at 34.16, which confirms we're in oversold territory — something we haven't seen since April 2025. The $710 PoC level is particularly important because it represents the price where the most trading activity has historically happened, and it's now being tested as support. Back in April, META found itself in a similar oversold zone near $430 before it staged a pretty solid recovery rally. After peaking near $750, the stock has pulled back sharply, which fits with the broader weakness we've been seeing in growth and tech stocks lately.
What's Behind the Pressure?
There are several things weighing on Meta right now. Rising bond yields and Fed policy are putting pressure on high-valuation growth stocks like Meta. There's also been some caution around advertising spending trends heading into Q4, which has analysts a bit concerned. On top of that, Meta's heavy investment in AI infrastructure is eating into short-term margins, even though these investments are probably good for the company's long-term prospects.
Here's how this could play out. On the bullish side, if $META manages to hold above $710 and the RSI starts recovering, we could see a bounce back toward the $750 resistance level — kind of like what happened after April's oversold reading. On the flip side, if the stock breaks below $710, that could open the door to deeper support levels around $650 to $600 based on the volume profile.
Saad Ullah
