Mastercard Inc. (MA/NYSE): general analysis
08 May 2018, 11:23
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY |
| Entry Point | 189.10 |
| Take Profit | 193.00, 197.00, 200.00 |
| Stop Loss | 185.00 |
| Key Levels | 172.00, 179.50, 183.50, 189.00 |
Current trend
Mastercard stocks continue to renew its historical highs after the publication of a strong quarterly report on May, 2. The weakening of USD in the last quarter became the growth driver for the profit in the international markets, where Mastercard is generating the most part of its income. EPS grew by 43% YoY to 1.50 USD, significantly exceeding The Wall Street expectations of 1.26 USD. The transactions volume increased by 14% YoY to 1.4 trillion USD, the income grew by 27% YoY to 3.6 billion USD, also exceeding the market’s expectations.
During the last week, Mastercard strengthened by 6.08% against the growth of S&P 500 index by 0.29%.
Support and resistance
The global upward trend is developing. Yesterday the stocks renewed its historical highs. The instrument is now testing the local resistance level of 189.00. The level of 183.50 is the “mirror” support. The price can grow further. The indicators reflect the strength of buyers: the price consolidated above МА (50) and МА (200); MACD is in the positive zone and growing. It is better to open the positions according to the main trend.
The comparative analysis of the indicators of the company and its competitors suggests that its shares are underpriced.
Resistance levels: 189.00.
Support levels: 183.50, 179.50, 172.00.
Trading tips
Long positions can be opened after the price is set above the level of 189.00. The closing of the profitable positions is possible at the levels of 193.00, 197.00 and 200.00. Stop loss is 185.00. It is better to use trailing stop while trading.
Implementation period: 3 days.
Mastercard stocks continue to renew its historical highs after the publication of a strong quarterly report on May, 2. The weakening of USD in the last quarter became the growth driver for the profit in the international markets, where Mastercard is generating the most part of its income. EPS grew by 43% YoY to 1.50 USD, significantly exceeding The Wall Street expectations of 1.26 USD. The transactions volume increased by 14% YoY to 1.4 trillion USD, the income grew by 27% YoY to 3.6 billion USD, also exceeding the market’s expectations.
During the last week, Mastercard strengthened by 6.08% against the growth of S&P 500 index by 0.29%.
Support and resistance
The global upward trend is developing. Yesterday the stocks renewed its historical highs. The instrument is now testing the local resistance level of 189.00. The level of 183.50 is the “mirror” support. The price can grow further. The indicators reflect the strength of buyers: the price consolidated above МА (50) and МА (200); MACD is in the positive zone and growing. It is better to open the positions according to the main trend.
The comparative analysis of the indicators of the company and its competitors suggests that its shares are underpriced.
Resistance levels: 189.00.
Support levels: 183.50, 179.50, 172.00.
Trading tips
Long positions can be opened after the price is set above the level of 189.00. The closing of the profitable positions is possible at the levels of 193.00, 197.00 and 200.00. Stop loss is 185.00. It is better to use trailing stop while trading.
Implementation period: 3 days.
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