Chart of the Day: Mastercard's Moves ... Priceless
The stock is rising on better technicals as money continues to flow its way.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
One thing that credit card companies like Mastercard MA can rely on it is a heavy-spending consumer.
This company appeared to be in the cross hairs of a slowing economy and lower employment, which would have been a direct hit on spending -- and, of course, Mastercard's earnings.
Or, so we thought.
The stock has been strong since a breakout in late August, despite a stock market that has shown so-so performance. Mastercard tagged an all-time high once again yesterday on even better turnover.
The technical condition is fantastic and bodes well for continuation. Look at the fourth pane and you'll see the Stochastics (momentum) remain buoyant. In the bottom pane, you can also see money flow has been expanding at a moderate pace. But when we see big institutions buying up stocks at all-time highs, it should tell you something, the price is not all that expensive.
Where might this stock run to? We can see $550 as a potential target over the coming weeks, about a 10% gain above current levels. We suggest, however, buying on any moderate pullback.
The candles in the top pane are blue in the GoNoGo (GNG Daily) composite of indicators, which tells us the price condition is strongly bullish. That has been the case since early August. The Moving Average Convergence Divergence indicator in the second pane is still on a buy signal from late July.
We like Mastercard here and rate is a "Two" in TheStreet Pro Portfolio, stockpile on pullbacks.
The Pro Portfolio is long MA.
