Sell alert? Technical indicators signal a bearish trend for Mastercard (MA) stock
The post Sell alert? Technical indicators signal a bearish trend for Mastercard (MA) stock appeared on BitcoinEthereumNews.com.
Mastercard (NYSE: MA) has been riding in a strong upward channel since 2021, consistently delivering steady returns to investors. However, recent technical indicators suggest a potential shift in momentum. Notably, an analysis by TradingShot points to emerging bearish signals, raising concerns about a near-term pullback. Bearish divergence and key levels While Mastercard’s price has maintained its position within a long-term bullish channel, the one-day Relative Strength Index (RSI) is now showing signs of weakness. According to the analysis, since October 18, the RSI has been forming lower highs, signaling reduced buying pressure. Mastercard stock analysis chart. Source: TradingShot/TradingView This divergence is at odds with the stock’s price, which has continued to make higher highs. Such bearish divergence is a critical warning sign, as it frequently precedes corrections in upward trends. Adding to the concerns, Mastercard recently tested its 50-day moving average (1D MA50) for the first time in four months. Historically, this level has served as a critical support, with previous breaches triggering retracements to significant Fibonacci levels. Analysts now point to the 0.382 Fibonacci retracement level, suggesting a potential short-term target of $495, a notable drop from current levels. Mastercard stock price. Source: Google Finance As of press time, Mastercard stock is trading at $525, reflecting a 1.15% decline over the past five days. However, the stock has managed to post a 2.22% gain on the weekly chart. Fundamental strength and growth drivers Despite the bearish technical signals, Mastercard’s fundamentals remain robust. The company’s Q3 FY2024 earnings exceeded profit expectations, reflecting a strong financial performance driven by a 13% year-over-year rise in net revenues to $7.4 billion. Key metrics revealed significant growth. Gross dollar volume climbed 10% YoY to $2.5 trillion, driven by double-digit growth in processed transactions. Cross-border volume, a critical indicator of international travel spending, jumped 17%…
