• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing

Mastercard Roars Back

MA is set up to break above its early January highs.
By BRUCE KAMICH
Jan 28, 2022 | 01:27 PM EST
Stocks quotes in this article: MA

In our last review of Mastercard (MA) we were seeing some positive clues on December 3 and wrote that "MA has 'rolled over' but its downside momentum is slowing so we are split in our forecast. The trend is still down but improving momentum and a possible broadening pattern suggest we may be starting a new base pattern. Let's keep an open mind and stay flexible."

 
Today we can see, chart below, that shares of MA are up sharply and heading towards its early January high. A break above the January high will give us the simple definition of an uptrend - a higher low and a higher high starting with early the December low and the late January higher low. Prices are trading above both the 50-day and 200-day moving average line.
 
The On-Balance-Volume (OBV) line has been steady since an early December low. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and could turn upwards soon for a new buy signal.
 
 
In this weekly Japanese candlestick chart of MA, below, we can see some improvement. Prices below $345 are being rejected with the lower shadow on the most recent candle. While the longer-term trend of the weekly OBV line is pointed down, we have not made a new low since early December. The weekly MACD oscillator is pointed up and close to crossing above the zero line for a new outright buy signal.
 
 
In this daily Point and Figure chart of MA, below, we can see that the software is showing a potential downside price target of $282. A rally to $384.57 may be needed to turn this chart bullish.
 
In this weekly Point and Figure chart of MA, below, we used close only price data. Here the chart has been "manipulated" a bit to show us an upside price target of $461.
 
 
 
 
Bottom line strategy: Market forecasts can change day by day and lately minute by minute. At this point in time on Friday it looks like the board market averages and MA are going to rally into February. MA is set up to break above its early January highs. A trade at $384.57 or higher should precipitate further gains. Experienced traders could go long MA risking below $350.
 

(Mastercard is a holding in the Action Alerts PLUS member club. Want to be alerted before AAP buys or sells MA? Learn more now.)

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Financial Services

More from Investing

Bearish Bets: 3 Stocks You Should Really Consider Shorting This Week

Bob Lang
May 28, 2023 10:30 AM EDT

These recently downgraded names are displaying both quantitative and technical deterioration.

I See a Way to Make Some Bread Off of Toast Inc.

Bret Jensen
May 28, 2023 7:00 AM EDT

Here's an options play on this software company for the restaurant industry.

Don't Just Sit There and 'Hope' for Your Stocks, Make a Decision

James "Rev Shark" DePorre
May 27, 2023 10:00 AM EDT

The biggest investing and trading mistake that people make is that they don't have a plan.

3 High-Yield International Oil & Gas Majors

Bob Ciura
May 27, 2023 7:15 AM EDT

The top global energy names are returning more cash to shareholders through dividends and share repurchases.

Nvidia Caught Traders Off Guard, Will Debt News Do the Same Soon?

James "Rev Shark" DePorre
May 26, 2023 4:57 PM EDT

We got a broad rally on Friday after a week of narrow action -- but once the debt ceiling news hits, the market will go on to the next stage of action.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 09:48 AM EDT CHRIS VERSACE

    Latest AAP Podcast With Portillo's CEO!

    Listen in as we talk with a rising star in the Chi...
  • 03:25 PM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Don't Just Sit There and 'Hope' for Your Stocks, M...
  • 07:32 AM EDT BOB LANG

    Webinar Thursday After the Close: Option Spread Trading

    Thursday, my good friend and colleague Sam DeMarco...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login