Upon Completion Of The Five Wave Sequence
We are watching META for a potential support base as the downward cycle from the October 29, 2025 high nears completion. The stock is in its final bearish wave, and as long as price stays below the $637.55 pivot, we anticipate one more push lower. This would finalize the pattern and set the stage for a new move.
This decline since late October has coincided with broader market hesitation, though the latest CPI data for October 2025 came in slightly cooler than forecast, which generally helps tech stocks. We’ve also seen a notable spike in the put-to-call ratio on META options last week, a sentiment indicator that has historically marked short-term bottoms. This suggests that maximum bearishness may be priced in.
In The Immediate Short Term
In the immediate short term, we could use strategies that benefit from this final dip. This includes buying near-term put options to capitalize on a break below the recent $595.20 low. Alternatively, selling call credit spreads with a strike price safely above the $637.55 pivot allows us to collect premium while the stock exhausts its downward momentum.
Once this five-wave decline is confirmed to be complete with a new low, we must pivot quickly to a bullish stance to capture the expected corrective rally. This means looking to buy call options, likely with December 2025 or January 2026 expiration dates, to give the rebound time to unfold. Bull call spreads would be a more conservative way to position for this upside with defined risk.
The potential rebound isn’t just a technical setup; it aligns with an improving environment for growth stocks. With interest rate fears subsiding after last week’s inflation report, institutional money may be looking for discounted entry points. A sharp bounce after a new marginal low would be our signal that larger players are stepping back in.
