In today's Stock of the Day, let's take a look at Mastercard, which recently tested a critical resistance level. Overall, the long-term sentiment remains positive as the price is supported by the green uptrend line.
Earlier, Mastercard completed a wedge correction, marked by the orange lines, which ended with a breakout to the upside, exactly as expected. After breaking out, the price surged and tested a key resistance level that was established in March, just below $490. This resistance has been tested at the end of August and the beginning of September, proving to be a strong barrier.
As long as the price remains below this resistance, the short-term sentiment is slightly negative, with a potential pullback towards the green uptrend line. However, if the price breaks above the blue resistance line, it would generate a strong buy signal, indicating a new bullish wave for Mastercard.