Mastercard Could Be Squeezing Toward a Breakout
Mastercard has been lulling into a triangle, but now the credit-card stock could be getting ready to charge higher.
Consider how Bollinger Bands Width has narrowed to its tightest range since November 2017. Also notice the bullish inside candle on the weekly chart. Both of those, combined with the triangle drawn above, highlight the volatility squeeze now taking place.
But will it last? On Tuesday, the 8-day exponential moving average (EMA) was just $0.37 below the 21-day EMA. A cross above could signal shorter-term momentum is turning more bullish.
Next, MACD has been rising for more than a week.
Finally, consider how all this consolidation is occurring around the same $367 area level where MA peaked last August. We could simply be witnessing old resistance becoming new support – albeit in a painfully slow manner.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Consider how Bollinger Bands Width has narrowed to its tightest range since November 2017. Also notice the bullish inside candle on the weekly chart. Both of those, combined with the triangle drawn above, highlight the volatility squeeze now taking place.
But will it last? On Tuesday, the 8-day exponential moving average (EMA) was just $0.37 below the 21-day EMA. A cross above could signal shorter-term momentum is turning more bullish.
Next, MACD has been rising for more than a week.
Finally, consider how all this consolidation is occurring around the same $367 area level where MA peaked last August. We could simply be witnessing old resistance becoming new support – albeit in a painfully slow manner.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
