MELI drops to lowest close since January 2nd
MercadoLibre Inc. (MELI) Technical Analysis Report for Apr 16, 2018 | by Techniquant Editorial Team
MELI finished Monday at 322.78 losing $6.89 (-2.09%). Today's closing price of 322.78 marks the lowest close since January 2nd. The bears were in full control today, moving the market lower throughout the whole session. Closing below Friday's low at 326.51, the market confirms its breakout through the prior session's low having traded $4.52 below it intraday. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (MELI as at Apr 16, 2018):
Monday's trading range was $10.02 (3.02%), that's below last trading month's daily average range of $14.40. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being below average.
Notwithstanding a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle.
Prices are trading close to a key support level at 320.20.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
With prices trading close to this year's low at 316.27, downside momentum might speed up should the share break out to new lows for the year. Trading close to February's low at 320.20 we could see further downside momentum if potential sell stops at the level get triggered.