Technical Analysis – Mastercard bears might have a chance to recoup recent losses
April 25, 2023 3:29 pm
Mastercard is hovering around the 373 area today as the market prepares for the key earnings releases. The bulls tried to record a new high for 2023, but the rally halted on April 24 at 377.17, breaking the recent series of higher highs and higher lows.
The negative news for the bulls doesn’t stop here as the momentum indicators are pointing to a potential reversal of the recent rally. The Average Directional Movement index (ADX) is turning lower from a 6-month high and the stochastic oscillator appears ready to break below its overbought territory. In addition, an imperfect bearish divergence seems to have formed as the stochastic recorded a higher high but not the Mastercard stock.
Should the bulls ignore these muted bearish signals, they would potentially try to push the stock towards the January 26, 2023 high of 382.61. The door would then be open for the April 28, 2021 high of 400.83.
On the other hand, the August 28, 2020 high of 367.07 appears to stand in the way for the bears. Lower, the path becomes tricker as the 50- & 100-day simple moving averages (SMAs) and the October 13, 2022 upward sloping trendline occupy the 359.61-360.01 area.
To conclude, the bulls have probably run out of gas after a sizeable upleg. This could allow the bears to regain some of the recent losses with some help from the momentum indicators.
Mastercard is hovering around the 373 area today as the market prepares for the key earnings releases. The bulls tried to record a new high for 2023, but the rally halted on April 24 at 377.17, breaking the recent series of higher highs and higher lows.
The negative news for the bulls doesn’t stop here as the momentum indicators are pointing to a potential reversal of the recent rally. The Average Directional Movement index (ADX) is turning lower from a 6-month high and the stochastic oscillator appears ready to break below its overbought territory. In addition, an imperfect bearish divergence seems to have formed as the stochastic recorded a higher high but not the Mastercard stock.
Should the bulls ignore these muted bearish signals, they would potentially try to push the stock towards the January 26, 2023 high of 382.61. The door would then be open for the April 28, 2021 high of 400.83.
On the other hand, the August 28, 2020 high of 367.07 appears to stand in the way for the bears. Lower, the path becomes tricker as the 50- & 100-day simple moving averages (SMAs) and the October 13, 2022 upward sloping trendline occupy the 359.61-360.01 area.
To conclude, the bulls have probably run out of gas after a sizeable upleg. This could allow the bears to regain some of the recent losses with some help from the momentum indicators.
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