Mastercard: Set to Climb on Back of Good EarningsMastercard NYSE:MA reported its Q3 2024 earnings with several good highlights:
Adjusted Earnings Per Share (EPS): Mastercard reported an adjusted EPS of $3.89, which surpassed the Wall Street expectations of $3.73. This indicates a strong performance in earnings per share, beating estimates by $0.16.
Revenue: The company's revenue was $7.4 billion, exceeding the consensus estimate of $7.27 billion. This 13% year-over-year increase in revenue reflects robust growth, driven by increased consumer spending and demand for value-added services.
Cross-Border Volumes: There was a significant increase in cross-border volumes by 17%, which was above the estimated growth of 16.2%. This suggests a strong recovery or growth in international transactions, possibly indicating recovery or growth in global travel and commerce.
Total Purchase Volume: Mastercard reported a total purchase volume of $2.06 trillion, which was slightly above the expected $2.05 trillion, showing a solid 11% year-over-year increase. This metric underscores the company's widespread use and the health of transaction volumes processed through its network.
Stock Market Reaction: Following the earnings release, Mastercard's stock saw positive movement in pre-market trading, indicating investor approval of the better-than-expected results.
Strategic Insights: The earnings reflect Mastercard's successful execution of its strategy focusing on digital payment innovations, like tap on phone and contactless payments, which contribute to the growth in transaction volumes and revenue.
Market Sentiment: Following the earnings release, there was a positive pre-market reaction, with MA's stock price increasing by 1.66%
Future Outlook: The positive earnings and the mention of low-teens net revenue growth for Q4 suggest confidence in continued growth, driven by ongoing digital transformation trends in payment solutions globally.
Stock Price Prediction: The combination of beating earnings expectations, positive market reactions, and generally favorable analyst ratings suggest that MA might continue its upward trajectory in the short term.
Botom line Mastercard is not only recovering from any previous economic downturns but is also capitalizing on the shift towards digital and contactless payments, enhancing its position in the financial technology sector. The earnings beat and the positive market reaction highlight investor confidence in Mastercard's current business model and future prospects in a rapidly evolving financial landscape.
Disclaimer: All content provided is for informational purposes only and should not be considered financial advice. Always do your own research and consult with a professional before making any investment decisions.
MA trade ideas
Mastercard’s Support Zone: Waiting for Buyers to Step Back InIf Mastercard’s price retraces to the green support zone, it could signal a renewed interest from buyers eager to push the price back up. This zone has previously served as a level where buyers stepped in, and if the price approaches it again, we may see a similar reaction. My strategy is to wait for signs of a bounce in this area, as it could provide a strong entry point for a long position. By observing price action and looking for bullish confirmation in the green zone, this setup could offer a promising opportunity for a move to the upside. Patience is key here, as I’ll only consider entry once there’s clear evidence of buyers returning.
Mastercard May Rise to 519.00 - 526.00 (READ DESCRIPTION)Mastercard May Rise to 519.00 - 526.00
Pivot Point: 482
The pivot point at 482 is a crucial support level for Mastercard. As long as the stock price remains above this level, the outlook is bullish, indicating potential for upward movement. A drop below this level would signify a change in sentiment and a potential shift toward bearish pressure.
Primary Strategy (Our Preference):
Entry Point: Look for long positions as long as the price holds above the pivot point of 482.
Target Levels:
519.00: This target indicates a significant potential gain, suggesting that bullish momentum is strong enough to push prices higher. Achieving this target would reflect positive market sentiment towards Mastercard.
526.00: The next target represents further upside potential, reinforcing the bullish outlook if the stock can sustain its momentum.
Alternative Scenario:
If the stock falls below the pivot point at 482, traders should consider short positions.
Entry Point: Initiate short positions if the price breaks and remains below 482.
Target Levels:
470.00: This level marks the first downside target, indicating potential bearish momentum if selling pressure increases.
464.00: The next target level suggests a further decline, highlighting risks if the stock continues to trend downward.
Technical Outlook:
RSI Indicator: The RSI is above its neutral level at 50, indicating that bullish momentum is in play, as buying pressure exceeds selling pressure.
MACD Indicator: The MACD is positive but below its signal line, suggesting that while the current trend is bullish, there may be a potential retracement or consolidation in the short term.
Moving Averages: Mastercard is trading above both its 20-day and 50-day moving averages (respectively at 493.93 and 477.84), further confirming the positive outlook and suggesting the stock is in a bullish trend.
Market Dynamics:
As long as Mastercard holds above the pivot point of 482, there is significant potential for upward movement toward the target levels of 519.00 and 526.00.
If the price falls below the pivot, market sentiment could shift, leading to potential declines toward support levels of 470.00 and 464.00.
The pivot point at 482 is critical for maintaining a bullish outlook for Mastercard. Holding above this level opens the possibility for price increases toward 519.00 and 526.00.
Current technical indicators support the bullish sentiment, but traders should remain cautious for any signs of retracement, especially if the price breaches the pivot support.
MASTERCARD short-term weakness is a buy opportunity. Target $515Mastercard (MA) gave us an excellent sell signal on our last call (April 02, see chart below), reaching our exact Target ($440.00) before turning sideways and reach this way a Higher Low:
That Higher Low was a bottom on the 2-year Channel Up pattern that has been dominating the long-term price action of the stock. As you can see it hit the 1D MA200 (orange trend-line) and the 0.382 Fibonacci retracement level and has rebounded since, which is similar to the March 16 2023 Low.
The similarities are evident on this chart between the Bullish and Bearish Legs of the Channel Up and the Sine Waves help at giving us a sense of Highs and Lows. The 1D RSI sequences between the two main fractals are also similar and this shows that probably we are at a similar symmetrical level as on July 14 2023.
As a result, we expect a short-term pull-back towards the 1D MA50 (blue trend-line) and then final rally towards the elections for a Higher High around $515.00, which will be just below the -0.236 Fibonacci extension (similar to the September 14 2023 High). Then we expect the stock to yet again seek the bottom of the Channel Up near the 1W MA100 (red trend-line) at $460.00.
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Looking Bullish Immediately on Mastercard!🔉Sound on!🔉
Thank you as always for watching my videos. I hope that you learned something very educational! Please feel free to like, share, and comment on this post. Remember only risk what you are willing to lose. Trading is very risky but it can change your life!
MA Ready for Bull RunDaily Chart of MA
MA was consolidating for four months since April.
In end-July, MA tried to break off this consolidation with a big gap after earnings. However, the overall weak market brought it down.
After filling the gap on 5 August, MA made another attempt to break off the consolidation.
On 15 Aug, MA made a continuation gap to break above the resistance.
MA is now ready to move higher.
Buy Overall trend is bullish.
Recent selloff from all time highs around 490 resulted in bearish channel which was pullback
Seller failed to push prices past previous support area of 430.
Bearish channel broke by upside gap due to postive earnings release
Earnings release : positive earnings and revenue growth beating analysts forecast by 2.29% and 1.59% respectively.
Channel resistance retested, by selloff after earnings release, close above 50 day moving average indicating buying pressure
buying pressure pushes prices past previous high indicating buyers are in control.
MasterCard Potential Downtrend Line breakout At $451.89 Upside Potential: Downtrend line breakout on 1-hour chart at $451.89 spotted.
Bullish Targets: If breakout holds, target prices are $460.27 and $466.86.
Bearish Scenario: If breakout fails, expect potential drop to $441.23 and $427.66.
Apply risk management
Risk Warning: Trading in CFDs is highly speculative and carries a high level of risk. It is possible to lose all of your invested capital. These products may not be suitable for everyone, and you should ensure that you fully understand the risks taking into consideration your investment objectives, level of experience, personal circumstances as well as personal resources. Speculate only with funds that you can afford to lose. Seek independent advice if necessary. Please refer to our Risk Disclosure.
BDSwiss is a trading name of BDS Markets and BDS Ltd.
BDS Markets is a company incorporated under the laws of the Republic of Mauritius and is authorized and regulated by the Financial Services Commission of Mauritius ( FSC ) under license number C116016172, address: 6th Floor, Tower 1, Nexteracom Building 72201 Ebene.
BDS Ltd is authorized and regulated by the Financial Services Authority Seychelles (FSA) under license number SD047, address: Suite 3, Global Village, Jivan’s Complex, Mont Fleuri, Mahe, Seychelles. Payment transactions are managed by BDS Markets (Registration number: 143350)
Disclaimer
Ichimoku Watch: Mastercard Testing Ichimoku ResistanceUpcoming Earnings
Mastercard Incorporated (ticker: MA) is scheduled to report earnings before the market opens on 31 July. The consensus Earnings Per Share (EPS) estimate for the fiscal quarter ending June 2024 is $3.51. The reported EPS for the same quarter a year prior was $2.89.
Active Downtrend
Basic trend studies demonstrate that the stock has been gradually trending lower since forming an all-time high of $490.00 in late March of this year. Price action has been working between two parallel downward lines that make up a descending channel (from $468.15 and $436.90).
What is interesting is that the stock recently bounced from the lower side of the descending channel, with the pullback testing the Ichimoku Conversion Line (blue at $442.15). Also, having the Base Line circling just above this line (red at $445.97) offers traders a resistance area to consider bearish scenarios in line with the downtrend.
Also situated near the Conversion Line and Base Line resistance zone is the Ichimoku Cloud between the Leading Span A (light green at $444.06) and the Leading Span B (light orange at $446.90).
Price Direction?
Today’s analysis reveals that Mastercard is demonstrating a bearish stance ahead of earnings tomorrow. The pullback from the lower channel support edge, therefore, may be viewed as a sell-on-rally signal, particularly at the underside of the Conversion Line/Base Line resistance area and the neighbouring Ichimoku Cloud.
Did you see this too? The simplicity of identifying tapering!This is the most basic I could do to show you all how simple it can be to identify good trade opportunities. It all starts with building the story and from there... well you've got the keys to the kingdom!
For those who don't like that I'm doing this after the fact - please see all of my other videos which identify these trade opportunities (like this one) before they happen.
Hope this was helpful!
Happy Trading :)
MA Long Bias, but entry spread is not advantageous.Mastercard (MA) has set up a potential mean reversion trade as it swept the latest monthly lows and closed above them. However, the volume doesn't support this move, and the daily candle's range doesn't indicate strong buying; it appears sellers are exhausted. The initial plan was to enter at the high of the day (HOD) with a stop loss at the low of the day (LOD), but the current $10 spread is unfavorable. This stock is on watch for a trade next week, with a possible push toward the $450 gap fill.
Bottom of a range its been in since January and approaching VAL MA - mastercard is at the bottom of the range its been in since the beginning of the year. Also, if we look at the volume profile since the October 2023 rally - we are nearing the Value Area Low (VAL).
Watch for a break either way and decide what to do.
Not financial advice.
MASTERCARD - Increased Probability of Continued DowntrendThe interpretation of Fiboclouds signals a continuation in the downward movement towards the targets indicated in the chart.
If this projection is confirmed and a partial realization occurs at the first target, the stop loss should be moved from its initial position to the same line where the position was entered.
This way, the journey towards the final target will proceed with reduced risk of losses and the preservation of the partial gains achieved so far.
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MA Mastercard Incorporated Options Ahead of EarningsIf you haven`t bought MA before the previous earnings:
Then analyzing the options chain and the chart patterns of MA Mastercard Incorporated prior to the earnings report this week,
I would consider purchasing the 457.5usd strike price Puts with
an expiration date of 2024-5-3,
for a premium of approximately $5.95.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Mastercard Adjusts Full-Year Revenue Forecast Stock Down 1.16%Mastercard Inc. ( NYSE:MA ) has revised its outlook for full-year revenue growth downwards, citing foreign exchange challenges as a primary factor impacting its projections. The payments giant anticipates net revenue growth to now align with the lower end of low double digits for 2024, a shift from its previous guidance targeting growth at the higher end of this range.
Chief Financial Officer Sachin Mehra highlighted the impact of foreign exchange dynamics, particularly the recent strengthening of the US dollar, as a significant headwind affecting the company's revenue outlook. Despite this adjustment, the outlook for net revenue growth on a currency-neutral basis, excluding acquisitions, remains consistent with prior forecasts, aiming for growth at the high end of low double digits.
Although shares of the company had shown resilience, climbing 5.8% year-to-date, they experienced a dip OF 1.33% following the announcement, reflecting investor concerns over the revised revenue forecast. Total network spending volume for the first quarter fell short of estimates, coming in at $2.29 trillion, below the expected $2.32 trillion.
However, Mastercard's ( NYSE:MA ) first-quarter adjusted earnings exceeded expectations, reaching $3.31 per share, surpassing the Bloomberg survey's average estimate of $3.23 per share. CEO Michael Miebach emphasized the company's positive momentum, driven by robust consumer spending, substantial cross-border volume growth, and successful deal wins across regions.
Mastercard's ( NYSE:MA ) performance mirrors that of its competitor Visa Inc., which also beat earnings estimates in the first quarter, reporting strong spending growth. Meanwhile, American Express Co. witnessed an 11% revenue jump during the same period.
One notable development during the quarter was Mastercard ( NYSE:MA ) and Visa's landmark antitrust settlement, which promises to cap credit card interchange fees and provide relief to merchants. This agreement, subject to court approval, is expected to yield significant savings for merchants over the coming years.