Technical Pulse: Mastercard February 23, 2021 96

 

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:

 

  1. 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.
  2. 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.
  3. 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.
  4. 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

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About the author

Profile photo of Chua Wei Ren

Chua Wei Ren
Technical Analyst
Phillip Securities Research Pte Ltd

Wei Ren specialises in Technical Analysis and has 11 years of experience in studying classic technical price action. He also study and research extensively on Elliott wave theory, Dow Theory. He believes that history plays an important role in how the market is reflected in the future.

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