NYSE:MA and NYSE:V have been on my list for a while.
The fundamentals look rather elevated however light at the end of the covid tunnel and seemingly endless fiscal stimulus seem people to keep on spending. Combined with the fact that Visa and MasterCard are pretty much dominating the market, I think the stock belongs in a well diversified portfolio.
After falling off a cliff in March I missed the opportunity to buy the stock for the recovery rally and thus look for a justifiable entry point. Today's setback has brought the stock into what I believe to be a "support area" between $320 & $330. Levels where I could see myself entering the stock unless something changes fundamentally in either the company or the broader market perspective.
What I like; + Positive regression trend since March 2020 lows, the only outlier is the Oct earnings dip. + Stock is now trending in a support channel between $320 and $330 that has attracted buyers in the past + RSI around 40's which indicates that the stock enters oversold territory + General Analyst price consensus is in the $370 range
What I don't like; - MACD at crossover point indicating potential bearish tendencies - Recent selling happened at higher than avg. daily volumes
What I watch; * Bottoming-out / reversal of RSI * MACD reversing to bullish tendency * Confirmation of support channel, in combination with * Confirmation of Regression channel bottom * News in the run up to earnings on Jan 29
***The above represents my personal view and shall not be considered investment advice. Risk management is key, do not trade what you can't afford to loose***
Handel aktiv
⋅
Long @ 324.56 SL 310 TP 370
Kommentera
⋅
MA testing the support band with MACD and RSI showing continued weakness. SL @310 remains intact for now. A break below the support band would make me reconsider exiting the stock early and wait for trend reversal.
Kommentera
⋅
MA is bouncing off the support band ahead of earnings. Expecting sideways trading in the run-up. Maintaining position and limits.
Kommentera
⋅
Broken the support band in yesterday's sell off amid high volumes. Back in support channel today.
Earnings closing in and thus additional volatility was expected.
Maintaining position for now as fundamentally I believe the stock has still upside.
Trade stängt: målet nått
⋅
Closed position at $380 in yesterdays trading, cashing in profits. Stock currently trading around analyst consensus.Still a good re-opening play and will remain on my watchlist.
Outstanding analysis, and crisp write-up. Well done. Agreed with everything written. MA is like a strong gorilla that should never be underestimated for its strength and resiliency. On 10/28/2020 when it took a dive down I doubted myself and the future of the stock only for it to come back roaring. Any such dip ever again I shall plunk the chips down with a vengeance. Anyways look forward to your future analysis.
SLRK
⋅
@sipiceanu thanks, highly appreciate the feedback. Let‘s see how the generally increased volitity in markets play out. Might increase risk in the short run with added vol.