In this Elliott Wave update, Meta Platforms Inc. ($META) is being revisited following the previously discussed blue box support areas. As anticipated, the reaction from those areas has happened as expected. Buying interest was seen from the blue box zones, and a meaningful bounce has been produced. As a result, the bullish sequence has been respected, and further upside is now being allowed while the stock remains above the key invalidation level.
Reaction From the Blue Box Areas Has Been Confirmed
In the prior outlook, attention was drawn to the blue box area as high-frequency support zones where the correction was expected to be completed and buyers were expected to step in. That view has now been validated by price action.
A strong reaction was produced from the blue box, and a major rally followed in line with expectations.
Why the Blue Box Areas Mattered
In Elliott Wave analysis, blue box areas are commonly used to identify extreme zones where corrective structures tend to finish. In $META, those areas were reached after corrective declines, and selling pressure began to fade once support was tested.
Consequently, a bullish reaction was produced instead of a continued breakdown. This is exactly why selling was not recommended into the blue box, and that approach has now been justified by the market response.
Current $META Structure
At this stage, $META appears to have completed another corrective leg into the recent blue box area at 528.43 – 394.14. From there, a bounce has already been seen, suggesting that wave (II) may have ended and that the next leg higher may now be getting started.
Moreover, the chart shows that price has reacted strongly after entering the blue box, which keeps the preferred bullish path intact. As long as the March 30th low at 520.26 remains protected, the recovery can continue to develop.
Near-Term Outlook
For now, additional upside can be allowed while the stock continues to recover from the blue box support area. Although short-term pullbacks can still be seen, they are expected to remain corrective as long as the larger bullish structure stays valid.
Furthermore, the current rebound suggests that buyers are still defending the key support region. If that remains the case, the next advance can continue to unfold in the sessions ahead.
Technical Summary
To summarize, the reaction from the blue box areas in $META has happened as expected. Support was found in those zones, buyers stepped in, and a strong rebound was produced.
As a result, the blue box setup has once again worked well in identifying a high-probability reversal area. While the stock remains above 520.26, the bullish sequence can stay supported and more upside can be seen.