Let's take a look at MELI. We can see two relevant aspects on the chart.
a) The price has broken an ascending trendline that has been working since MAY 2020
b) The price has been correcting for the last 4 months almost, and the main structure we can observe is a descending Wedge.
Based on those two items on the daily chart, this is our trading plan.
Hi Traders and investors.
This is my outline on rough guesses based on nothing but the chart, I don't know anything about this company, hence the loose targets on timing.
We have a key support on this one at 1338, which in my opinion is key for the speed of gains for current holders of the stock.
this is my take, always do your own dd. and take this as...
Assuming that the wave count is correct, Mercado Libre could be close to completing a corrective wave to start the fifth wave of impulse, which could send the price to the range of 2,500-2,700 and high at $ 3,000 in the fall of this year.
It is currently at $1,400, the $1,200 is a key support level, more than that I doubt it will go down, if it does touch them,...
The stock is doing a strong retracement to the 0,618 Fibo. It seems to recognize USD 1400. On the short, the stock could down more to USD 1200, or going up to USD 2000. I think, it depends Fundamental indicators that It looks good, specially to the long term. My consideration, It's a good time for buy and hold.
Once again no indictors just a simple formula: impulse correction impulse correction. The orange/reddish correction inside the yellow correction is called a fractal.
***This does not constitute investment advice.***
As the portfolio of the biggest hedge funds, MELI is going popular among some of them.
Here I have analyzes the chart with Trend lines, Fibonacci and clusters, As you can see the red circle is a good entry point if the bearish trend line breaks.
Currently at Wave 3 consolidation A-B-C. Touched 50 SMA support. Might dip to Fib .38 at $1703.
First level of support at $1770. If cannot hold, will further to Fib .38 Level. Great entry zone for long term.