Will MA Stock Rebound From The Short-Term Upside Line?

by Darius Anucauskas
12:02, 2021/07/30

Yesterday, after failing to reach the current highest point of July, at 395.24, the stock of Mastercard Inc (NYSE: MA) corrected lower, but still managed to remain above a steep short-term tentative upside line drawn from the low of July 19^th. If the share price continues to balance above that upside line, we will stay positive, at least with the near-term outlook.

If MA drifts a bit lower, but finds support near the aforementioned upside line, new buyers could step in and drive the share price higher again. The stock may travel this time to the current highest point of July, at 395.24, a break of which would confirm a forthcoming higher high, possibly setting the stage for a move to some higher areas. That’s when we will aim for the current all-time high, at 401.45, a break of which would place MA into uncharted territory. We might then aim for levels like 405, or 410.

The RSI and the MACD are currently flat. The RSI remains above 50 and the MACD continues to run above zero, despite sitting slightly below its trigger line. The two indicators show positive price momentum, which overall supports the above-mentioned scenario.

Alternatively, if the previously discussed upside line breaks and the stock falls below the 382.30 hurdle, marked by the low of July 28^th, that may open the way for further declines. MA could fall to the 377.10 obstacle, or to the 374.88 zone, marked by the low of July 21^st. Around there, the share price might also test the 200 EMA on our 4-hour chart. If there are no buyers in that area, the slide may continue, where the next potential support zone could be near the 363.41 level. That level marks the lowest point of July.

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