We covered Mastercard Inc. (MA) recently, writing, "MA has made a big move up the past year, but sell signals are not present. Prices are on the stretched side, so I would be on alert for a possible sideways correction. Investors could consider raising sell stop protection to a close below $140." Our suggested sell stop has not been elected so let's revisit the charts and indicators.
In this updated daily bar chart of MA, below, we can see that prices touched the rising 50-day moving average line. The top of chart support starts around $155 and probably extends down to $145 so it is possible that MA closes below the 50-day line. The 200-day simple moving average line is down below $140 so it will probably not be touched.
The On-Balance-Volume (OBV) line rose nicely the past 12 months and only now shows a small two- or three-day dip. The Moving Average Convergence Divergence (MACD) oscillator just crossed to the downside, signaling a take profits sell or a sell in an uptrend.
In this weekly bar chart of MA, below, we can see only one weak indicator. Prices are well above the rising 40-week moving average line. The weekly OBV line does not show any aggressive selling. The weekly MACD oscillator, however, has narrowed and could cross to a weekly take profits sell signal.
In this Point and Figure chart of MA, below, we can see a consolidation zone with pretty good volume in the $152-$142 area. Buyers of MA might show up in this area again.
Bottom line: There is an old politically incorrect saying that only Art Cashin remembers about "raiding the house." As the house is being raided MA is also being taken away. Ideally, the $152-$142 area could contain the damage. Continue to use a stop on close below $140.