Stock of the day: Mastercard
03 July 2024
An amazing buy signal has emerged on MasterCard, marking an exciting development for investors. Yesterday, the stock had a positive session, reversing from mid-term lows and indicating potential for significant gains. The bigger picture reveals an upswing from October 2023 to March 2024, followed by a bearish correction. Recently, MasterCard reached the bottom of this correction, breaking through the 38.2 Fibonacci retracement level and a key horizontal support. This breakout turned out to be false, as the price quickly rebounded above the broken support, signaling a strong buy opportunity.
False breakouts are a notable occurrence in technical analysis, often leading to robust movements in the opposite direction. In MasterCard’s case, the price’s ability to reclaim the broken support area indicates strong buyer interest and sets the stage for further upward momentum. This rebound is marked with a yellow color on the chart, illustrating the swift recovery and the potential for a bullish trend continuation. Investors should closely monitor the stock as it aims for the green downtrend line, which now serves as the target for this renewed uptrend.
The current sentiment on MasterCard is positive, driven by this technical setup. As the price continues to recover from the false breakout, the likelihood of reaching the green downtrend line increases, offering a promising outlook for investors. This pattern suggests that MasterCard is well-positioned for a continued rise, and traders should consider this an opportune moment to enter the market. The overall trend is bullish, and the stock appears poised for further gains in the near term.