Yesterday at a glance: the e-commerce marketplaces operator has almost recovered all its losses from a previous close of $862.97 after dipping down to $830.15 yesterday.
Core Durable Goods Orders data from United States will be released today at 12:30 UTC with analysts expecting a decline to 0.2%. Potentially significant price fluctuations in MercadoLibre are expected to follow.
This down-slide takes place despite the positive US macroeconomics indicators data that was published earlier — highly important Crude Oil Inventories data from United States beat analyst expectations of 1 million with a reading of 2.59 million.
While price action maintains a negative bias, United States New Home Sales (Sep) released yesterday at 14:00 UTC with a figure of 603,000, while the previous figure was 677,000. Fresh 5-Year Note Auction data from United States came out at 4.192.
MercadoLibre could begin to recover as it approaches significant support, now $17.91 away from $815.45. Dipping below could be an indication that further losses are ahead. Despite being in the red so far in the current trading session, MercadoLibre peaked above its 21 day Simple Moving Average around $851.65 — typically an early indicator of a new bullish trend beginning to emerge.
Overall, looking at the technical analysis landscape, it seems MercadoLibre might start pointing upward in the short term.
MercadoLibre was not the only decliner in the consumer discretionary sector; Amazon lost 4.1% yesterday and closed at $115.66.
On the other hand, positive performances could be seen by looking at other consumer discretionary stocks as Alibaba traded at $68.51 after closing yesterday's trading day at $63.22 (up 8.37%). Toyota traded at $137.93 after closing yesterday's trading day at $137.07 (up 0.63%).
Looking ahead, ongoing depreciation may be prolonged as United States Pending Home Sales projected to come out at -5% — worse than previous data of -2%; data will be released tomorrow at 14:00 UTC. Projections for United States Core Durable Goods Orders are set for a continuation of decline with 0.2% while previous data was 0.3%; data will be released today at 12:30 UTC.
In addition, United States GDP is projected to outperform its last figure with 2.4. It previously stood at -0.6; data will be released today at 12:30 UTC.
The e-commerce marketplaces and online auctions operator is now trading 49.53% below the significant high of $1,710 it set around 11 months ago.