MELI pops to highest close ever
MercadoLibre Inc. (MELI) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, MELI finished the month 15.75% higher at 985.77 after edging higher $4.94 (0.5%) today on low volume, notably underperforming the Nasdaq 100 (1.96%). Today's close at 985.77 marks the highest recorded closing price ever. Trading up to $10.99 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MELI as at Jun 30, 2020):
Tuesday's trading range has been $17.95 (1.83%), that's far below the last trading month's daily average range of $33.72. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MELI. Prices continued to consolidate within a tight trading range between 942.00 and 988.96 where it has been caught now for the whole last trading week.
The stock ran into sellers again today around 988.96 for the third trading day in a row after having found sellers at 987.00 in the prior session and at 985.03 two days ago. The last time this happened on May 15th, MELI actually gained 2.52% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 998.11 where further buy stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for MercadoLibre. Out of 83 times, MELI closed higher 59.04% 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 61.45% with an average market move of 2.41%.