MasterCard (MA) has been grinding higher in a major uptrend for the last six years. The upside has eased considerably since it posted a high at $90 in December 2014, with two nominally higher highs at $93 and $94.25 marking the upper limit of a rising wedge pattern that points toward $100. Price action into triple digits could yield a series of stairsteps that frustrate momentum buyers. (MasterCard is part of TheStreet's Action Alerts PLUS portfolio.)
This is a volatility contraction pattern that will eventually yield more vertical price rate of change, whether higher or lower. Support at $91 has been holding firmly since early May, giving bulls the short-term advantage. On Balance Volume has risen with price, suggesting the current financial rally will underpin the stock and set up the key test. There's no advantage buying into the high side of a rising wedge, so let's just sit back and see what happens.
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