Meta shares are surging over 10%, trading near $734.00 today, primarily because investors are enthusiastic about the rapid adoption of Meta’s new AI assistant, Muse.
Some key drivers:
- Muse has climbed to the top of Apple’s U.S. App Store, providing early evidence that Meta’s enormous AI spending could produce meaningful consumer adoption and revenue.
- Muse can perform practical tasks such as retrieving information, completing forms, arranging appointments and assisting with purchases—not simply answer questions.
- Meta is reportedly offering paid subscription tiers, creating a clearer path toward monetizing its AI investment.
- Wells Fargo raised its Meta price target to $796 and maintained an Overweight rating.
- Investors are positioning ahead of Meta Connect on Wednesday, where the company could release additional usage statistics and announce new AI and smart-glasses capabilities.
- The broader backdrop is supportive: Treasury yields and oil prices are lower, while the Nasdaq and AI-related stocks are rallying.
The bigger story is that Muse’s early popularity is changing the market’s view of Meta’s projected $130–$145 billion in 2026 capital spending. What had been viewed mainly as an expensive AI gamble is increasingly being viewed as a potential new growth platform.
In a September 11 post titled “Meta stock surges on Muse AI launch—but can it break key resistance?”, I highlighted a key technical hurdle on the chart and wrote:
“If the price can break above the trendline—and stay above it—the technical bias would shift more firmly in the buyers’ favor. That should open the door for additional upside momentum toward the July high near $685, followed by the 61.8% retracement near $690.”
So, what happened?
Meta shares moved above the trendline on Tuesday and closed above it. That break shifted the technical bias more firmly in the buyers’ favor and opened the door for additional upside momentum.
On Wednesday and Friday, the price extended into the targeted $685–$690 resistance area. Sellers leaned against that zone during both trading sessions, showing that the resistance was important.
Meta closed Friday at $670.51 after testing the underside of the broken trendline during the session. Buyers stepped in near that technical level and provided support. That was another positive development: the old resistance trendline was beginning to act as support.
Today, the stock opened at $680 and immediately started moving higher. Once the price broke decisively above the $685–$690 resistance zone, buyers rushed into the market and the upside momentum accelerated.
The rally has taken the price as high as $741.30 so far, with shares currently trading just below that level at $740.64.
What comes next?
The next major target is the 2026 high at $744.97.
A break above that level would open the door toward additional swing highs from 2025, beginning at $759.66. Beyond that, the all-time highs at $790.80 and $796.25 would become the longer-term upside targets.
The progression of upside targets is:
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$744.97: 2026 high
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$759.66: Swing high from 2025
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$790.80: Former all-time-high area
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$796.25: Record high
On the downside, the former resistance zone between $685 and $690 is now the key line in the sand.
That area should act as support if the bullish breakout is real. As long as Meta remains above $685–$690, the buyers remain firmly in control and can continue targeting higher levels.
There may be some reluctance to extend above $744.97 or $759.66. Either level could attract profit-taking and create more two-way price action. However, unless the price falls back below $685–$690, any pullback would be considered a correction within the broader bullish move.
The technical roadmap worked as expected: break the trendline, target $685–$690, and watch for buyers to take greater control on a sustained break above that area.
They did—and the buyers are now making a run toward the next major targets.
Technical education: Why former resistance can become support
This price action is a good example of how technical levels can help traders define the market’s bias and manage risk.
The $685–$690 area initially acted as resistance because sellers repeatedly entered the market there. Once the price broke decisively above that zone, however, its role changed. Former resistance can become support as traders who missed the initial breakout look to buy a pullback.
That does not guarantee the price will continue higher. Technical analysis is not about guarantees. It is about identifying levels where buyers and sellers are most likely to make their next stand.
In this case, staying above $685–$690 keeps the buyers in control and allows traders to focus on the next upside targets at $744.97 and $759.66. A move back below $685–$690 would weaken the breakout and warn that buyers may be losing control.
The lesson for traders is straightforward: identify the key level, wait for the break, and then watch whether the market can stay above it. The break creates the opportunity, but holding the broken level confirms that the buyers remain in control.
That is how technical levels can define the bias, establish targets and—most importantly—give traders a clear area for managing risk.
This article was written by Greg Michalowski at investinglive.com.