Weekly & Monthly Charts

Taking a look at Mastercard, currently its stock is trading at around $448.64 a share. The weekly chart indicates that momentum has now shifted and further downside is possible. The price has fallen below its 20-day moving average and is now trying to find support above its 50MA. We can see the near-term support reads $436.86, a break below here is likely to test the 50MA. The 50MA is currently reading $427.14. This outlook is supported by the gradient of the MACD, even though the MACD is a lagging indicator and will not always react as quickly to a change of momentum, the current gradient is a concern with a bias towards the downside. The RSI is now neutral and seems to have stabilised as it reads 50, but this can happen when the stock is trying to find a base of consolidation. Consolidation can happen in either direction as it is simply a pattern of whereby demand and supply try to find a balance ahead of a tilt to either side. Only a move back above the 20MA could be a trigger point for further upside. The 20MA currently reads $462.13.

 

We have also taken a look at the monthly chart to gain further insight into price action. The candlestick for March suggests momentum has stalled, with a bearish engulfing candlestick for April. Not always the case, but this can be an indication that profit-taking could now be taking place for the mid-term outlook. Additionally, the monthly MACD is showing a potential bearish divergence. In Minipip’s opinion, the risk to reward right now for MA is high.  

 

(Chart & Data from IG)