Why This Might Be Our Trade of the Week
As the market attempts to recover a bit from Friday’s bloodshed, there is one stock that looks to be fighting to hold on by the skin of its teeth. Mastercard (MA) has established a strong level of support at the 390 mark, but broke through it on Thursday.
To kick off this weeks of trading SPY and QQQ have both tried to put in a relief rally, however, stopped just short after filling gaps on many of the major indexes. The story is always the same in these types of situations. If the broader market can get a substantial push off these levels, then so should MA.
However, we always have to take into account the broader trend at play. Currently, much of market sentiment is bearish and I can’t say I disagree with that. The end of last week has left a rather bad taste in many of the mouths of the bulls out there, but we are at some key macro levels on the major indexes.
There is a major point of contention MA has with those who look at this chart as bullish. With the break of support from Thursday, that might just be the confirmation the bears needs in order to take this thing much lower. Why?
If you look at the chart in the video breakdown, you’ll find a rather bearish chart pattern I identify… Will this mean a break down is imminent for MA? One trade setup to look out for would be a retest of support, now resistance if MA can’t break and hold above, is the retest and breakdown of support.
Take into account the bearish chart pattern we are seeing and you won’t want to take your eyes off this stock this week. Be sure to have alerts or reminders set in order to be locked in when this trade approaches the make or break point at any time during this week.
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