Just a couple days back we looked at 7 retailers that should perform well this holiday season. With a lot of people looking for deals online (thus using credit cards), it hit me that maybe we should also look at credit cards. Most notably Mastercard (MA).
Lets see what the chart tells us…
There are couple things I want to point out:
1. The current uptrend in the stock started in January of 2009, which leads me to believe it was sparked by something good that happened in the quarter prior. Could we get this same reaction again?
2. Bullish Fibonacci pattern. The current trend is moving in a formation that is similar to many bullish runs. Basically you can see that the stock initially hit off the 50% line, followed by a bounce off the 38% line, continued with a push passed the 50% and then testing new support at the 50% line, and finally we see a bounce off the 62% line. Now we want to see another bounce of the 50% a push passed the 62% line.
To summarize it all, there are a lot of bullish signs on the chart of Mastercard along with a lot of positive option activity, so make sure to keep an eye on whats to come.