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Meta Platforms (META) stock has been on a tear.
The shares are going for their fourth straight weekly gain, and they're up almost 25% in that stretch.
Shares of the social-media stalwart exploded in the first quarter, gaining more than 75%. That trounced its FAANG peers, with Apple (AAPL) being the next best performer in the quarter, up about 27%.
In fact, Meta ultimately passed Tesla (TSLA) in Q1 performance and — when it comes to large cap tech — trailed only Nvidia (NVDA) and its 90% gain.
All of which begs the question of whether the rally can continue.
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Meta did not fare well in the 2022 bear market, posting a peak-to-trough decline of 77% from its September 2021 high down to the November 2022 low.
But several rounds of cost cuts and layoffs have helped spur the stock price. And even after a massive rally from the lows — up almost 150% — the shares trade at just 21.5 times this year’s estimated earnings.
While that’s a tad rich for a stock with only modest growth forecasts, it does leave room to justify more gains.
Can Meta Stock Continue to Rally?
![](https://www.thestreet.com/.image/c_fit%2Ccs_srgb%2Cq_auto:good%2Cw_620/MTk3MDE1NTc1MjE2NTMxMjA1/meta.png)
Chart courtesy of TrendSpider.com
Meta stock has now rallied in five straight months.
The shares broke out of a strong downtrend (blue line) and have been surging ever since. Now, though, there's reason for a pause.
Meta stock is running into the declining 21-month moving average and the 161.8% upside extension from the prior pullback in February.
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Still and all, while the stock may be a bit extended, the current trend is very bullish. That should have active investors and traders looking for a pullback to buy.
Specifically, I’d keep a close eye on the $193 to $197 area. Depending on the strength of the overall market, that zone could be $197 to $200.
Either way, this area was prior resistance and most recently support. If it aligns with the 10-week moving average, then all the better for a dip-buying opportunity.
If the stock continues higher instead of pulling back, look for a potential test of the $232 to $235 zone. That’s the 200-week moving average and the 50% retracement of the entire pullback.
For traders with a long position, this would be a reasonable profit-taking zone. The stock at last check was trading around $213.
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