Mastercard Inc. (MA) has been in a long-running uptrend as the rumors of the U.S. consumer's death have been exaggerated.
Let's check out the charts and indicators of this Action Alerts PLUS holding.
In the daily bar chart of MA, below, we can see that the shares have recovered their entire decline from February to late March and even more. MA pushed up to a new high in August. Prices are trading above the rising 50-day moving average line and above the rising 200-day moving average line. A bullish golden cross of these two indicators can be seen in late June.
The trading volume has declined from the torrid pace in February-April but it is still active. The On-Balance-Volume (OBV) line has been rising since April and tells me that buyers of MA have been more aggressive, which helps to confirm the uptrend.
The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this weekly bar chart of MA, below, we can see that the shares have been going up for at least the past three years. Prices are above the rising 40-week moving average line.
The weekly OBV line is firm and steady. The MACD oscillator is very bullish and pointed higher.
In the first Point and Figure chart of MA, below, we used daily price data. Here we can see that the shares have reached an upside price target of $365. Targets in bull markets tend to get overrun (and targets in bear markets are sometimes conservative). Reaching a Point and Figure price target can mean that technically oriented traders take some profits and we see prices consolidate these gains.
In this second Point and Figure chart of MA, below, we used weekly close-only price data with a traditional scaling. Here the chart projects a potential $511 price target.
Bottom-line strategy: Cash almost disappeared in the pandemic and consumers and merchants prefer a touchless transaction, which points to higher prices for MA, in my opinion. The charts and indicators are bullish so traders should continue to trade MA from the long side after some sideways price action around $360. Risk a close below $330 for now. The round numbers of $400 and $500 are the next price targets.
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