The charts and indicators of Mastercard Inc. (MA) were reviewed a month ago and I wrote, "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."
MA survived two tests of the rising 50-day moving average line, stopping above the $152-$142 area. In recent days MA has finally closed below the 50-day moving average line so a new strategy is called for - let's check our outstanding balance and the charts.
In this daily bar chart of MA, below, we can see that the 50-day average line is cresting as the weaker price action during March has finally impacted the moving average. The 200-day moving average is still below the market and probably not going to be an issue.
The daily On-Balance-Volume (OBV) line has weakened during March telling us that sellers of MA have finally turned more aggressive. In the lower panel is the 12-day momentum study showing lower highs from January to February to March as prices made higher highs. This difference between the price action and the rate of change of prices is a bearish divergence and could foreshadow weaker prices ahead.
In this weekly bar chart of MA, below, we can see that prices are above the rising 40-week moving average line. The weekly OBV line is positive until February and then is softens slightly. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside to signal a take profits sell.
In this Point and Figure chart of MA, below, we can see some distribution and a downside price target of around $162.
Bottom line: The charts and indicators are suggesting that MA can weaken in the next month or two. We could retest the $160 area or the lows of February. With support beginning at $155, a significant decline is probably not in the cards right now.