MA trade ideas
MA Long on Short-TermBuy Limit 208.00
Stop Loss 198.00
Doji star with 2 gaps is formed at support line. It just reached 0.618 Fib retracement level.
Many NASDAQ stocks have similar formations, which means that the market is turning uptrend
S&P500, DJI and NASDAQ are at important support level.
RSI went down too quickly. It means an imminent up in price.
I will give a sell indication later.
Stay tuned for update
MA shows bullish trading activityMA shares broke out to new highs on big volumes. This trend should continue.
Short SellFollow the comments on the chart! If the price goes up to the size of the stop loss point, put the stop loss on the entry point, Stop loss means that the closing price must be below the Stop line, the shadows are not acceptable. NYSE:MA SP:SPX
MA - Counterattack candle pattern, RSI positive reversal,...RSI shows positive reversal, stochastic is about to golden cross the signal line from oversold zone. Candles from today and yesterday form a counterattack pattern. July 30th and 31st candles form a tweezers bottom pattern (lower wicks will act as support, and can also be used as stop). All these indicate a bottom reversal.
Buy Alert for "MA"My WT Cross strategy has alerted me to a buy signal for Mastercard(MA) at $207.89, so my idea is to buy the dip.
MA Secondary Earnings BreakoutSimpler to look for a failed breakdown than it is to chase the breakout here. See AMZN and BABA charts for similar examples... I think they all hit on the same day due to Italy macro news.
Bearish engulfing on Daily May lead to retest of 184 earning b/oIF Friday closes below 201.16 I think there will be some follow thru on the downward movement
MA inside week in front of supply zone, too high to buy?Last year, at least 7 out of 10 stocks looked like this MasterCard weekly chart.
While it's a totally different concept compared to what the market happened.
With the Q1 market fluctuation, MA showed great relative strength to remain a intact weekly uptrend!
It solved the 1st thing-- I don't want to short the supply zone nor the inside week breakdown at all !
2nd question: how about the inside week breakout, is this too high to buy?
The hard part for this setup is that it can only get its 1st kick after it made new all time high.
Other than that, I actually like this long a lot!
Here we got 2 options:
1. wait for the weekly breakout and trade the intra-day bullish setup
2. trade the inside week and put the 1st kick at the supply zone @182.5, and execute careful risk-reward stop!
Let's see how it goes!
MASTERCARD SHORTShort from $192.71
Market Cap - $201.5B
Beta - 0.98
Trailing P/E - 47.59
Forward P/E - 27.34
P/B - 35.46
- Founded in 1996 and based in NY, Mastercard has outperformed it's industry for quite some time now. The company was well positioned for growth given its large market share, ongoing expansion and significant secular shifts towards electronic payments.
- Despite a strong balance sheet, growing ROE, consistent revenue growth and ongoing acquisition - we believe Mastercard is overbought and has some risks to its share price.
- Mastercard has high expenses and continues to face problems in maintaining their operation costs. Over the past five years operating costs have been increasing and in fiscal 2017 their operating expenses increased 16% due to higher advertising and marketing costs and also higher general and administrative expenses. We believe that operating expenses will continue to increase over coming quarters because of investments in long term plans e.g. security solutions, geographic expansion which also means more employee and technology investments and also digital investments. Mastercard expects YoY operating expenses for 2018 to grow at a "low double-digit rate".
- The share price is massively overpriced, their forward P/E is 27.34x which will cause investors to hold off a little and not to pay such a premium. It's forward P/E ratio has been higher than the industry's for quite some time now. Price to Book is also showing signs of the equity being overstretched at 35.46.
- In order to gain new customers and businesses, Mastercard have incurred quite high costs under their rebates and incentives. In 2015 this dragged revenues down 5%, in 2016 2% and in 2017 MA saw a 22% increase in rebates and incentives. If the incentives continue to accelerate we believe that this will affect the company's financials in the not so distant future.
NeroTree Capital rates Mastercard Incorporated as a SELL with a price target of $150.
MA: Double ABCD completionBack in April I was talking about using the elevated volatility to buy some cheap July put spreads on MA with the recognition that we might be early to game. Well...there appears to be a double ABCD completion in progress and I am keeping my fingers & toes crossed. Just a reminder, not only is this an expensive stock, it is a parabolic price action. Hope springs eternal!
Dear Mastercard, I love youThey say never fall in love with a stock… Well Mastercard, I love you. I made so much money of off this stock! And we’re about to make more. Wait for it to pull back into the trendine again, go long and Swing your way back into profits again!
No need to make things complicated, watch price action, look for reaction zones, manage risk and become consistently profitable.
Need help in your trading? Send me a massage with your questions.
