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Mastercard (MA) has been steadily drifting down the rankings in the SIA S&P 100 Index Report for most of the last year. The shares last exited the green zone back in April and have been steadily sliding down through the Yellow Neutral Zone since then. Currently MA is sitting in 51st place, two spots above the red zone.
Since falling out of the green zone, Mastercard is down 3.8% while the S&P 500 Index is up 6.8% over the same period.
Candlestick Chart Falls Through a Floor. MasterCard (MA) shares started the year under accumulation but have increasingly come under distribution since peaking in April near $490.00. An initial pullback snapped an uptrend line and following a few weeks of orderly retreat, MA settled into a lower $440.00 to $460.00 range.
In the last week, selling pressure has increased. The shares gapped down below $450.00, also taking out their 50-day moving average. Yesterday, MA broke down and closed below $440.00 for the first time since January. These bearish signals have come on an increase in volume, indicating more investors have become motivated to head for the exits.
Next potential support appears near $420.00 based on a measured move from the recent range, followed by the $400.00 round number. Initial resistance appears near the $450.00 recent breakdown point and the 50-day average.
Point and Figure Chart Breaks Down Again. This 1% chart highlights the recent downturn in MasterCard (MA) shares. After rallying with the market starting back in November, Mastercard peaked back in April near $490.00. since then, the shares have been backsliding. Two bearish Double Bottom breakdowns with only a 3-box bounce in between then have combined into a Bearish Catapult, a sign that a new downtrend has started.
Vertical and horizontal counts suggest next potential downside support may appear near $402.50, near the $400.00 round number, then $383.00. Initial resistance on a rebound appears near $458.15 based on a 3-box reversal.
With a bearish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 5 out of 10, MA is exhibiting short-term weakness against the asset classes.
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