Is Mastercard Staggering Toward a Breakout?

NYSE:MA   Mastercard Incorporated
Mastercard has gone nowhere for a year, but now it could be ready to start moving.

Notice how prices jumped on November 9 and moved sideways for the next six weeks. MA accomplished a few things technically during that time.

First, the credit-card giant managed to consolidate above an important zone around $330. That was the bottom of its bearish gap when the Covid correction began on Feb. 24. It was also resistance in early August and failed support in late October.

Additionally, the $330 area was near its 50-day simple moving average (SMA).

The next level that matters is approximately $345. That was the top of MA's range in early December. Old resistance could be turning into new support once again, but $15 higher.

Additionally, the 21-day exponential moving average (EMA) crossed above the 50-day simple moving average (SMA) in late November and has remained there since. That can indicate the trend is turning more bullish.

MA is also interesting fundamentally because its business stands to benefit from a rebound in the economy after the pandemic.

Finally, Wednesday's price action included a lower low than Tuesday and a higher high. That kind of bullish outside day can indicate buyers are taking control.

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