MELI - could be ripe for breakup soonThere are several factors that are aligning in MELI's favour for sustainable recovery in the near future (minor pullbacks not withstanding):
1. Since hitting the low in June2022, it began to whip saw sideways within an ascending triangle pattern. This is a possible reversal pattern when formed after a downtrend.
2. A golden cross on 22 Dec2022: another signal that the trend is possibly reversing up although the stock could still continue to whipsaw for several weeks (sometimes up to a couple of months) until the 200day moving average could flatten or start turning up.
3. Very strong volume in the last 2 days that propelled the stock to move 15.6% in just 2 days to retest the neckline of the ascending triangle.
Watching to see if a (valid) breakup will materialise in the near future (perhaps after the next minor pullback).
Disclaimer: Just my 2 cents and not a trade advice. I may or may not enter into this trade. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
