Mastercard: A Technical Approach 1D (May 06)

May 5, 2020

X Force Global Analysis:


In this analysis, we take a purely technical approach in analyzing Mastercard (MA)

Analysis

- The first thing we notice is the fact that Mastercard is in the process of a "V" shape recovery, just as many other blue chip stocks
- We have broken through and closed above two major descending trend line resistances
- There is a price gap around $340
- We are currently trading within an ascending channel, creating higher lows and higher highs
- Prices have broken through and closed above the Ichimoku Cloud resistance
- The EMA (Exponential Moving Average) Ribbon cross generally signals mid-term trend reversals
- In the case of Mastercard, we see that a death cross has formed on the EMA ribbon before a big drop, and we are currently looking at a potential golden cross
- The Relative Strength Index (RSI) is showing an uptrend as well, creating higher lows and higher highs
- The Moving Average Convergence Divergence (MACD) is also at an uptrend, forming higher lows and higher highs after a golden cross

What We Believe

We believe that Mastercard's technicals remain solid, as we have broken through many significant resistance levels while maintaining the bullish trend. Moreover, there is a lot of strength and momentum to support this ongoing bullish trend, potentially moving up to fill in the price gap around $340.

Trade Safe.