Mastercard (US: MA) has been ranging after prices recovered from the dip in March 2020. Recent technicals indicate that the stock is poised for a break out from the corrective range:
- Despite trending in the corrective range stance, Mastercard has formed a large 5-wave symmetrical triangle, which is a continuation of the bullish trend from the longer-term perspective.
- The stock may have an additional upside to 123.6% extension of wave ((A)) as it is potentially in a larger corrective flat in formation.
- Besides that, the resistance zone has been tested four times, weakening such resistance. Also, as the stock is pulling back from the resistance with shorter rebound.
- The bullish engulfing has successfully close above the 50-day moving average, indicative of further bullish upside.
*Timeline of the trade is 3 weeks from the date issued.
*Should US$400.00 be broken, we can confirm that the upside is an impulsive move up.
CHART LEGENDS
Moving average
Red dotted line = 200 Periods Moving average
Blue dotted line = 50 periods Moving average
