MA closes higher for the 3rd day in a row


Mastercard Incorporated (MA) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team

Highlights

MA breaks above 20-day moving average for the first time since February 21st
MA closes above its opening price after recovering from early selling pressure
MA closes higher for the 3rd day in a row
MA runs into sellers again around 265.81
MA closes within previous day's range after lackluster session

Overview

Moving higher for the 3rd day in a row, MA ended Thursday at 263.18 gaining $6.70 (2.61%), significantly underperforming the S&P 500 (6.24%). Trading up to $5.24 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on March 19th, MA actually lost -6.92% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.

Daily Candlestick Chart (MA as at Mar 26, 2020):

Daily technical analysis candlestick chart for Mastercard Incorporated (MA) as at Mar 26, 2020

Thursday's trading range has been $13.15 (5.1%), that's below the last trading month's daily average range of $18.79. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for MA.

During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.

Mastercard Incorporated managed to close above the 20-day moving average at 259.65 for the first time since February 21st. Prices are trading close to the key technical resistance level at 270.03 (R1). After having been unable to move above 266.30 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 265.81.

While the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.

Buying could speed up should prices move above the nearby swing high at 266.30 where further buy stops might get activated.

Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Mastercard Incorporated. Out of 147 times, MA closed higher 59.18% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 65.99% with an average market move of 1.14%.


Market Conditions for MA as at Mar 26, 2020

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