In the midst of a 3 day bullish trend, Yesterday’s session put the brakes on the ongoing uptrend — a quiet day for MercadoLibre as it remained range-bound within a $914.86 – $967 range before closing at $940.78.
United States EIA Short-Term Energy Outlook is next.
Technical chart analysis shows MercadoLibre is approaching key support, around $41.32 away from $899.46. Dipping below could indicate further losses are ahead while a failure to break below this level is likely to be seen positively by market bulls. Concerning technical analysis and more specifically, trend indicators, the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. Fibonacci-minded traders witnessed a key Fib level of $924.68 holding firm – an indicator of highly concentrated demand around this level. Asset volatility analysis shows that MercadoLibre’s upper Bollinger Band® is at $941.87, suggesting that a downward move may follow.
Notwithstanding MercadoLibre’s appreciation in recent days, the technical outlook suggests its bullish run is now fading.
Meanwhile, mixed performances were seen by other consumer discretionary stocks as Tesla closed at $197.08 (down 5%). Nike closed at $93.44 (down 2.45%).
Data to be released today might clear up some of the market fog as United States Crude Oil Inventories is projected to outperform its last figure with 1.1 million, having previously been at -3.12 million. The figure will be published tomorrow at 15:30 UTC. United States EIA Short-Term Energy Outlook scheduled to come out today at 17:00 UTC.
MercadoLibre hit a significant low of $612.7 around 4 months ago, but has since recovered 53.19%.