Last look pre-earnings for the old Mag7 – Meta

• Posted by Greg Harmon
• on July 9th, 2026

As promised yesterday, there is one more of the old Mag7 to look at for a potential run into or post earnings, Meta Platforms ($META). This stock had a big run off its 2022 low to a top in early 2025 before a significant pullback. That left the price at the April 2025 low in the chart below. It was a rapid ascent to the top in August and since then the price has been long broad trend lower marked by both lower lows and lower highs and periods of consolidation.

Studying the chart reveals some interesting price action when overlaying Fibonacci retracements ratios. Some of you are likely familiar with the Fibonacci sequence and the Golden Ratio. The sequence is created by adding each of the last 2 numbers together to create the next number. Starting with 1, 1, 2, 3, 5, 8,13….. and continuing. What makes this sequence interesting is twofold.

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First is the math of it. The further out in the sequence you get comparing the ratio of any two numbers in the sequence approaches an irrational number that begins 1.618. This is known as the Golden ratio. If you take the ratio of the smaller number to the larger number, or the reciprocal, it approaches the irrational number beginning with 0.618. Going further, if you take the ratio of any 2 numbers that have a another number of the sequence between them it approaches the irrational number beginning with 2.618. And the reciprocal of that approaches 0.382. Finally, the square root of 0.382 is 0.618. The square root of 0.618 is 0.786, and the square root of 0.786 is 0.886.

Second is the importance of these numbers and ratios in nature, first the numbers. Flowers have a Fibonacci number of petals. The count of the interlocking spirals of the seeds of a sunflower almost always consist of consecutive Fibonacci numbers. If you count the spirals of a pine cone winding up in one direction versus the other, you will typically find pairs of Fibonacci numbers. The fractal pattern of a bud from a head of broccoli is composed of a series of smaller buds. The spirals forming its intricate geometric shape directly follow the Fibonacci sequence. As a tree grows, the main trunk splits into a branch, creating 2 paths. The main stem then grows before splitting again, resulting in a branching pattern that matches the sequence as the tree grows upward.

Now the ratio. As a nautilus grows, it builds larger chambers in a logarithmic spiral. The ratio of the width of each chamber to the next closely approximates the Golden ratio. The arrangement of leaves around a plant stem is defined by a fractional turn of a Fibonacci ratio. Beyond the count of spirals for pine cones, the ratio of the diameter of each successive ring of scales as you move outward from the base remains proportional to the Golden ratio, maximizing structural density. The human body exhibits these proportions across multiple dimensions. The ratio of the length of the forearm to the hand follows the Golden ratio, as do the three sections of every human finger. The same with the ratio of the body length above and below the belly button. On a vastly larger scale, the arms of spiral galaxies curve outward in a geometric progression that mirrors the golden spiral, balancing gravitational pull across interstellar space.

The universe was built on Fibonacci numbers and ratios. It should be no wonder then that traders use them as well when looking at price action. If we glance back at that chart above now it stands out the number of times that the price has hit resistance or support at the ratios of 0.382 and 0.618. Perhaps this is because as we look at the chart of the price action those ratios, which we have seen in live everywhere without knowing it, are pleasing to the human eye and create some action. Following that thought process the symmetry of a 0.5 ratio also is pleasing. The square roots that stem from the ratios have also played a role in the price action.

Take in total along with the momentum indicators we can use this to create a possible trade set up. More on this tomorrow.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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