Stock of the day: Mastercard
31 July 2024
As highlighted in our morning commentary, today promises to be exceptionally busy for traders, especially with key earnings reports. Among them, Mastercard is set to release its earnings, with an expected EPS of 3.51 and revenue of 6.8 billion dollars. Mastercard’s current technical setup is particularly intriguing. The stock is positioned just above a green uptrend line and is contained within a wedge pattern marked by orange lines, indicative of a bearish correction within an overarching uptrend.
From a technical perspective, a break below the green uptrend line and the wedge’s lower boundary would signal a strong sell. Conversely, a breakout above the upper wedge line would suggest a robust buy signal. This setup presents a clear dichotomy based on the impending earnings report. Typically, such a wedge in an uptrend favors an upward breakout, bolstered by a convincing bounce off the green support line.
Given today’s earnings release, traders should be prepared to adjust their strategies accordingly. While the technical indicators lean towards a bullish breakout due to the nature of the wedge pattern and support line, the actual direction will be significantly influenced by the earnings outcome. Keeping a close watch on the post-earnings price action will be crucial for making informed trading decisions.