Stock of the day: Mastercard

By Tomasz Wisniewski|

Published: November 23 2022, 15:20 GMT+0

Stock of the day: Mastercard


Today’s analysis reviews Mastercard. They had a really important session yesterday whose outcome was definitely great for the buyers.

Since the beginning of February, Mastercard was in a proper downtrend. This came to a stop in October, when the price managed to create a really handsome double bottom formation (blue), which initiated the bull run.

After breaking the horizontal resistance on the 308 USD (yellow) and later defending it as a support, buyers moved a level higher and broke the major down trendline (black) in November. Interestingly enough, this area was also defended as a support, which is the reason we are writing this analysis today. The Tuesday session was crucial for Mastercard as it looks like the down trendline was defended yesterday for good.

The price managed to create a bullish engulfing pattern (orange). While not a typical one, as we are missing a lower opening here, the end of the day is slightly more important here: the price managed to create a long bullish candle with the daily close being higher than the open from the previous day, which is definitely positive. As long as the price stays above the black line, the buy signal is ON. The price coming below is, of course, possible, but after yesterday’s session, slightly less probable.