Daily Market News - 16th Nov 2021

The Metaverse - Stocks To Watch

If you’re not paying attention to new technology, investing in tech can be hard.

Looking at Zuckerburg’s smug little face is even harder.

But what about the Metaverse? Is it really the way the world is moving? Is Zuck going to be the evil genius who drags everyone into a virtual world where NFT’s become the norm in our daily lives?

I’ve no idea, you probably don’t either.

Something I do understand reasonably well however, as a market participant, my sole job is to find a way to profit from what the market is telling us.

The Metaverse stocks are going up, so that’s all I’m concerned with, and I have a few charts below which I think warrant adding to watchlists.

Meta/Facebook (FB)

2 weeks ago, I put out a bullish call on Facebook based primarily on historical 200 Simple Moving Average support, with added confirmation of a bullish divergence and a favourable risk: reward proposition.

My thesis of FB putting in a bottom looks to be playing out and the stock has already moved 8-9%, the chart should make sense to most of you, and when Zuck pivoted Facebook and embraced the change to a potential new world, the technical support levels coupled with an attractive P/E for a big Tech juggernaut was too difficult to ignore.

I have placed a $385 target and hope to see FB go and test all time highs soon.

Unity Software (U)

This stock has a lot of hype around it and as a Software/Gaming developer, the market is telling us they are front and centre in the “Metaverse” game… It’s not my job to question why stocks are going up or why investors want to own it, price tells me this, so why fight price. That’s just how I see it.

It’s a stock that’s moved 50% in the last 8 weeks and while it’s now broken out to new all time highs and surpassed my 1st target, if we can see the $175 act as a new floor for the stock on a pull back, this could offer opportunity for those of you who utilise Technical Analysis. Below $175 and I’d be inclined to sit back and watch.

Many of our clients and members have been doing very well on this stock and IF the “Metaverse” stocks are going to continue higher, Unity will need to hold $175. It’s an important level for my work.

Roblox (RBLX)

Another name that has some hype behind it, and when we look at the chart, we can see it is breaking out to new all time highs above the levels it hit in June.

For my work, I also like to pay attention to psychological levels in the market ($100, $500, $1000 etc)… these big round numbers have merit in my world, so if RBLX is going to go and fill that gap, for me I probably wouldn’t want to hang around.

I like to keep it simple. Bullish above $100 and that base break out level… below that… all bets are off for me.

To clarify, I’ve no clue whether these stocks will continue higher, my views could change by next week, but as I write this, I still find the space interesting.
Metaverse is a new word I’m sure for many of us, and when Unity Software and Roblox started to make a move, I didn’t even consider them as Metaverse names.

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