🔴 Bearish Reversal Pick: Meta Platforms (META)
Why It’s Vulnerable to a Pullback
- Meta is trading just below recent highs (~$702), while analyst sentiment is cautiously optimistic ahead of its Q2 earnings call tonight, with expected volatility of ±5%.
- Momentum indicators show divergence: RSI near neutral, MACD fading, and price rolling from overhead resistance (~$740).
- Following a ~31% YTD surge, Meta faces increased scrutiny—historically it pulls back post-earnings if guidance falters.
Swing‑Trade Strategy
- Equity Short: Consider shorting research near $708–712 (stop above $720). Targets: $680 initially, then $650 if earnings disappoint.
- Options (Bear Call Spread): Sell the $710 call and buy the $720 call (October expiry). Defined-risk strategy to capture limited upside post-earnings.
🟢 Bullish Reversal Pick: Marvell Technology (MRVL)
Why It Looks Primed for a Bounce
- MRVL surged ~9% intraday to $83.35 after a bullish analyst report citing continued growth from deepening ties with Microsoft—reversing earlier weakness.
- Technically, MRVL pushed above its 50-day moving average (~$70), with tight overhead resistance and positive momentum setup.
- Volume spike and analyst upgrades suggest increasing conviction in MRVL’s AI chip story and growth narrative.
Swing‑Trade Strategy
- Equity Long: Enter on pullback to $82 or above sustained breakout. Stop below $78. Targets: $92 first, then $100 stretch.
- Options (Bull Call Spread): Buy the $85 call and sell the $95 call (October expiry) to capture upside while limiting risk.
📊 Trade Overview Table
| Ticker | Direction | Entry Trigger | Stop Level | Target Range |
|---|---|---|---|---|
| META | Bearish | Near $708–712 | > $720 | $680 → $650 |
| MRVL | Bullish | Above $82 breakout | < $78 | $92 → $100 |
🌐 Market Commentary
The broader market is cautiously treading near record highs as cracks are starting to appear in tech breadth. Key macro data and central-bank commentary are in focus ahead of Meta’s earnings tonight. Traders are selectively positioning for potential sector rotations, favoring stocks with clean technical breaks or exhaustion signals. These setups offer structured ways to play high-reward reversal setups with defined risk.