The big credit card stocks have enjoyed monster long runs. But one, MasterCard, MA, may have reached its limit. The chart below shows that it made a high on May 21 at 589, and has been pulling back since. With its twin, Visa (V), consolidating, we have given this the benefit of looking at the pullback as a bull flag. But signs are growing that it could be something more. The Relative Strength Index (RSI) is crossing the mid-line as the Moving Average Convergence Divergence indicator (MACD) continues to move lower. The newest piece of information is that the Bollinger Bands® are opening to the downside, as price is reaching the lower band.
MasterCard, MA
With a market that seems at best to be moving sideways, and at worst pulling back, the wind is blowing lower. The Simple Moving Averages (SMA) on the chart have not been touched since April 25 on the 50 day SMA, and September 6 on the 100 day SMA. Both could give it a lift, but the Point and Figure chart is carrying a bearish Price Objective to 530 below both. Protect or take profits if you have ridden this trend higher. Watch for that break down with an eye towards selling the 520 Strike Put if you have been waiting for an entry.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Mastercard May Have Hit its Limit
Published 06/12/2013, 01:34 AM
Updated 05/14/2017, 06:45 AM
Mastercard May Have Hit its Limit
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