Mastercard Stock Still Has A Chance To Move Higher

by Darius Anucauskas
12:18, 2021/02/12

After the news hit wires that Mastercard Inc (NYSE: MA) is planning to expand its cryptocurrency projects, due to a rising interest in digital token, the company became very attractive to investors. Mastercard users will be able to perform the usual tasks of buying, holding and exchanging the most popular cryptos, the same as with the traditional currencies.

The technical picture of the Mastercard Inc stock (NYSE: MA) on our 4-hour chart shows that, from the end of January, it continues to balance above a short-term upside support line taken from the low of January 29^th. Although the short-term trend is still to the upside, in order to get excited with higher areas, we would prefer to wait for another break above the 344.29 barrier. Yesterday, MA did make its way above that barrier, however, it failed to close above it.

If, eventually, the share price pushes and closes above the 344.29 zone, that may attract a few more buyers into the arena. Such a move could increase the stock’s chances of drifting further north, towards yesterday’s high, at 349.60. MA might stall there once again, or even correct back down a bit. That said, if the price remains above the previously-discussed upside line, we will higher again. Another move in the upwards direction, and a break of the 349.60 obstacle, may open the door for a move to the 354.91 level, marked by the high of January 8^th.

The RSI and the MACD are currently pointing slightly to the upside. In addition to that, the RSI remains above 50 and the MACD had recently popped above its trigger line, while continuing to run above zero. So far, the two oscillators are in support of the above scenario, as both indicating a rising price momentum.

Alternatively, if MA ends up breaking the aforementioned upside line and then falling below the 335.41 area, marked near the low of February 8^th and the high of February 9^th, that will place the price below all of its EMAs on our 4-hour chart, potentially spooking new buyers from entering any time soon. The stock might then drift to the 330.00 obstacle, a break of which could set the stage for a move to the 323.33 level, marked by the inside swing high of February 1^st.

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