We analyzed Mastercard Inc. (MA) a month ago, and I wrote that, "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."
MA weakened into early April and has firmed back to $180 twice but our indicators remain weak. Let's check and see if there is a reason to shift gears ahead of earnings Wednesday.
In this daily bar chart of MA, below, we can see price and volume and some indicators. Prices have been crossing above and below the still rising 50-day moving average line the past five weeks. MA is still above the rising 200-day line so the longer-term trend is up.
Now look at the volume histogram below the price chart -- volume has been slowing since early February. If volume was building up the past three months ahead of earning I would be more positive. The daily On-Balance-Volume (OBV) line has been rolling over slightly the past three months suggesting that sellers of MA have been slowly becoming more aggressive. In the lower panel you can see that price momentum has been growing weaker since mid-January.
In this weekly bar chart of MA, below, the indicators are mostly bullish. Prices are above the rising 40-week moving average line. The weekly OBV line is steady but the Moving Average Convergence Divergence (MACD) oscillator has already turned down with a take profits sell signal.
In this Point and Figure chart of MA, below, we can see an upside price target of $193. But a decline to $178 or $168 could weaken the picture should it develop.
Bottom line: MA has been largely stuck in a sideways trend the past two to three months. Volume has diminished and momentum has weakened. These are not "run out and sell" signals but I would be cautious near-term.