Did $MELI just post a double bottom on weekly chartCould easily sell off more, but I opened a $80 March spread on Friday at $35.5 (44%).
Option execution somewhat expensive but I like the risk reward.
Wanted to add risk prior to upcoming earnings releases early February.
Also took long call positions in $OKTA, $NTNX and $GOOGL
MELI trade ideas
MELI: Downtrend to Continue?MELI - Short Term - We look to Sell at 1290.00 (stop at 1392.00)
Posted a Double Top formation. Closed below the 20-day EMA. Trading volume is increasing. Our overall sentiment remains bearish looking for lower levels. Further downside is expected and we prefer to set shorts in early trade.
Our profit targets will be 959.00 and 763.00
Resistance: 1300.00 / 1709.00 / 1970.00
Support: 972.00 / 755.00 / 630.00
Disclaimer – Saxo Bank Group. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis, like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis, as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
MercadoLibre: Selling a retest of a double topMercadoLibre - Short Term - We look to Sell at 1262.00 (stop at 1345.00)
Posted a Double Top formation. Previous support, now becomes resistance at 1261.00. We look for a temporary move higher. The bias is still for lower levels and we look for any gains to be limited. Further downside is expected although we prefer to set shorts at our bespoke resistance levels at 1261.00, resulting in improved risk/reward.
Our profit targets will be 1037.00 and 763.00
Resistance : 1262.00 / 1709.00 / 1970.00
Support : 972.00 / 755.00 / 630.00
Disclaimer – Saxo Bank Group. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis, like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis, as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
$MELI could be done falling (3/5)Conviction: 3/5
could have another leg down to touch lower channel line (2008)
General Thesis
could have finished 3 leg down correction
Weekly RSI at oversold levels - historically only touches this level once before bouncing
Growth
Margins are consistently falling since 2011
revenue growth trending up, new ATH
Value
P/FCF expensive (negative FCF)
P/S below historical average, come down a lot since peak in 2021
Fundamentals & Balance Sheet
low debt to asset (<1)
good quick ratio (>1)
Potential Risks
expensive P/FCF
data does not contain last recession
another leg down to touch trend support?
Meli at 50% of discountDuring the last years Meli was crashing no more than 50%, this crash was the biggest in his history, however for long term this is an asset that I would definitely keep in my portfolio, I think that we will see a range above ema 200 weekly and if S&P doesn´t crash next year Meli could recover ATH, but it could take more than one year.
what do you think?
MercadoLibre Analysis 03.12.2021Hello Traders,
welcome to this free and educational analysis.
I am going to explain where I think this asset is going to go over the next few days and weeks and where I would look for trading opportunities.
If you have any questions or suggestions which asset I should analyse tomorrow, please leave a comment below.
If you enjoyed this analysis, I would definitely appreciate it, if you smash that like button and maybe consider following my channel.
Thank you for watching and I will see you tomorrow!
MELI : Multiple back to Historical LowHere is one thing to confirm that Nov~Dec 2021
Mr.Market doesn't like Tech Stock and tries to compress multiple back to where it was before Covid Pandemic.
In some cases, Company's Revenue scale grew up more than double during 2020~2021 but the price was pulled back to early 2020.
It means multiple was dramatically compressed recently.
This stock stay in the market for 20y ( founded in 1999, the same year as Alibaba was founded )
It is one of 40 baggers stock during 2000~2020.
It has been proven fundamental is very strong and competitive.
You see revenue, customers, GMV, TPV, and other metrics continuously growing.
Ignore the price action!
Keep calm and stay Long for Long term
$MELI - momentum works both ways"Can't catch a bid on the buy side" and continues to be thrashed whether Nasdaq is up or down.
Selling might be overdone, but $MELI could be headed for $970 (not my prediction). This is a momentum (or lack thereof).
I keep hoping the volume will fall off, or that we'll just have an up day.
Long and trying to hold ...
MELI | Breakout or Bounce?MELI, Breakout or bounce?
Today we will take a look at the Latin American e-commerce platform "Mercado Libre."
Currently, the price is on a relevant level to pay attention to; it's a zone where we have a support level and the cloned trendline of the current correction. As this is a major zone, we can start thinking about the bullish or bearish resolution from here.
IF the price breaks the current zone, the next support level is likely to be the bearish target of the movement, around 970. However, if the price can bounce from here, we can expect a bullish movement towards the descending trendline at 1550.
I want to see the price breaking the descending trendline (yellow) to consider bullish opportunities. EXAMPLE
Thanks for reading! Feel free to add your view and charts in the comments.
$MELI has been "rag-dolled"Selling pressure has been phenomenal from November 15th and fairly strong from the recent high of $1970 late August.
Short-term movements are unpredictable, so consider this stock a better investment than a trade at this time.
Broader market showing weakness ... and I anticipate increased volatility in $NDX.
Might have a strong buy opportunity immediately before the debt ceiling showdown in Senate ('political theater and shenanigans) around Dec 10th to 15th? Watch $NDX levels.
I drew an arbitrary blue line at $1280 just because I thought it fit well there. It doesn't mean diddly.
Spreadsheet insert is my attempt to track the short-term impact of recent secondary offering ... don't rely on my numbers.
$MELI Mercado Libre ...The secondary was approximately 2% dilutive in number of shares. But the market has assessed a 12.5% share price reduction, and appears to still be searching for a new level, perhaps lower.
Cautiously optimistic that most of the selling related to this equity offering will abate by Friday this week. But not sure we aren't experiencing broader selling in anticipation of a pending change in Fed monetary policy.
Worse outcome next few weeks would be for $MELI to announce an acquisition.
Best outcome is they use the proceeds to finance the Mercado Pago side of the business and the credit card receivables.
I'm long $MELI. Have added shares this week and rolled options to lower strike prices and longer dates. Starting to have concerns about the broader market valuation.
MELI Long Opportunity after the correction Mercadolibre is still correcting although drawing closer to a zone I expect a bounce/reaction.
Since Sept 2020 MELI has been trading inside a ascending channel and printed a fresh ATH in Jan 21.
I anticipate a move down to the bottom of the channel with the following confluences 200EMA,
.618 fib pull from bottom of the channel to the last swing high and the point of control *POC as drawn on the chart.
ALways know your invalidation and use a SL ..Like Share and follow for regular setups and analysis
MercadoLibre $MELI making the reversalI see a lot of bullish signs in NASDAQ:MELI . The MACD is showing a bullish divergence making higher lows, the volatility has decrease with lower and lower volumen and the price is making a "cup & handle" patter; a classic reversal pattern. The only thing that doesn't meet my criteria is that the MAs aren't align the way I like. But, other han that everything looks very good.
With a buy above its resistance in $1,600 you could have a price target near $2,000 for a +24% profit with a 8% risk. That's a fair deal to me.
MELI Analysis showing possible drop.1d Time-Frame Analysis
Lets start with the bigger time-frame, with the bigger picture. NASDAQ:MELI is at level 2 rise, meaning it's missing one more leg to the upside. Then, why short this? Just checked the cycles and I see that MELI does level 1 rise, retrace, level 2 rise, M formation, drop. So instead of level 3 being the peak formation before the reversal, level 2 is the peak of the cycle, and now we are in level 2 with an M formation!
4h Time-Frame Analysis
4h time-frame seems to be a copy paste of 1d time-frame. We can see the cycle to the downside, with only 2 levels and the second level being the peak formation, and now we can see two levels to the upside, with this level 2 being the possible peak formation.
Trade light
Be careful guys, trade light. I'll set my SL at 1918.59, because if price touches that price level, the M formation will be possibly invalidated. Though, I'll wait for the close of the candle to be sure I'm not closing a stop-hunt rise. On the other hand from 1874.80 to our SL we have 2.34%, so playing big would mean a big loss. I will use a 2.5% of my entire account.
Take Profits
Close 30% at 1742.83
Close 35% at 1674
Close 35% at 1583
Happy trading!