Mastercard (MA) Fills Gap

At the beginning of the week I pointed out the stock chart for Mastercard (MA). While the stock is relatively expensive for most traders, a positive for these type of stocks is the massive point swings they can experience.

In my analysis at the beginning of the week I was basically looking for the stock to fill the gap it created a couple weeks back. This move was sparked by larger than normal volume, and the stock subsequently filled the gap in less than a week; however, volume did subside with each passing day. See my stock charting basics.

Now we have reached my initial price target and are sitting at a point of resistance.

At this point, I would consider (a) taking some profit or (b) continue to watch for confirmation of break into next trading level, which has technically already happened, but I would like to see another close higher and perhaps larger volume.

According to the current chart, if this new support holds, then look for the next price target of $265.