Mastercard: Price continues to fall
Bearish price trend continues after 3rd quarter earning targets was missed due to lower travel-related spending during the summer months.
From a technical standpoint, the price gap brings us to the previous strong resistance zone of $280-283.
Important points to highlight here:
- Price reacted strongly by 'gapping' past the 0.382 Fib level from $316 to 301
- This zone is now a strong support price zone.
- This zone has confluence with the 0.5 Fibonacci level
It is very likely that this support will hold with prices interacting with / consolidating around, the zone before either:
- reversing back up (very likely going by how strong this level has been in the past), AND
- move up to close the price gap of $316 to 301, or
- break through support level ($280 - 283) and head further towards the next logical support level of around $260-263, which also confluence with the 0.618 Fib level. This bearish sentiment is supported by MACD, which is now in the bearish territory.
My view are as follows:
1. For those who are yet in any position, to wait for a clear market direction (from $280-283 price level) following the sell-off precipitated by investor disappointment with the missed 3rd quarter earning targets. You might be able to BUY in cheaper between $263 and 283
2. For those who already have a position in Mastercard at higher price level, this is a good opportunity to Dollar Cost Average at the $280 - 283 level. If price falls further you have another opportunity to DCA further at the next support level of $260 - 263.
From a technical standpoint, the price gap brings us to the previous strong resistance zone of $280-283.
Important points to highlight here:
- Price reacted strongly by 'gapping' past the 0.382 Fib level from $316 to 301
- This zone is now a strong support price zone.
- This zone has confluence with the 0.5 Fibonacci level
It is very likely that this support will hold with prices interacting with / consolidating around, the zone before either:
- reversing back up (very likely going by how strong this level has been in the past), AND
- move up to close the price gap of $316 to 301, or
- break through support level ($280 - 283) and head further towards the next logical support level of around $260-263, which also confluence with the 0.618 Fib level. This bearish sentiment is supported by MACD, which is now in the bearish territory.
My view are as follows:
1. For those who are yet in any position, to wait for a clear market direction (from $280-283 price level) following the sell-off precipitated by investor disappointment with the missed 3rd quarter earning targets. You might be able to BUY in cheaper between $263 and 283
2. For those who already have a position in Mastercard at higher price level, this is a good opportunity to Dollar Cost Average at the $280 - 283 level. If price falls further you have another opportunity to DCA further at the next support level of $260 - 263.
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