One Word: Plastic


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Once known as reliable momentum names, notably Mastercard, the credit card players have recently become a much-maligned group, in the face if menacing regulatory risk out of Washington. However, a look at their charts of late is telling me to keep them on watch.

The weekly chart of Mastercard shows a textbook, multi-year symmetrical triangle near its apex. Note how all weekly moving averages are relatively compressed and are all below price, offering support. I am looking for a break and hold above $260 to validate the bullish move out of the triangle. In a similar vein, Visa’s daily chart shows price breaking out above all moving averages today, out of a descending triangle. Once again, all of those moving averages are now compressed and firmly below price, which usually portends a big move higher.

Both names can run much higher before they even come close to approaching multi-year highs.

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4 Responses to “One Word: Plastic”

  1. One word with hyphen …

    K-CUP

  2. silver_yummies

    Beautiful….

  3. [...] As I wrote several weeks back, the credit card plays, led my MA, continue to act constructively on multiple timeframes. I do not have a position in MasterCard yet, but we are looking for a move above $260 for the weekly breakout, as illustrated in that prior post (still in a symmetrical triangle). On a daily timeframe, we can see below that the stock has based out nicely, and is trying to pierce the $253 level. [...]

  4. [...] I first flagged Mastercard for you as a long-term bullish setups back in this post in March 2011, the stock has shot up from $251 to as high as $498 of [...]

Comments are closed.

One Word: Plastic


____________

Once known as reliable momentum names, notably Mastercard, the credit card players have recently become a much-maligned group, in the face if menacing regulatory risk out of Washington. However, a look at their charts of late is telling me to keep them on watch.

The weekly chart of Mastercard shows a textbook, multi-year symmetrical triangle near its apex. Note how all weekly moving averages are relatively compressed and are all below price, offering support. I am looking for a break and hold above $260 to validate the bullish move out of the triangle. In a similar vein, Visa’s daily chart shows price breaking out above all moving averages today, out of a descending triangle. Once again, all of those moving averages are now compressed and firmly below price, which usually portends a big move higher.

Both names can run much higher before they even come close to approaching multi-year highs.

____________

12631.png”>12631.png” alt=”" width=”590″ height=”390″ />

____________

12631.png”>12631.png” alt=”" width=”590″ height=”390″ />

4 Responses to “One Word: Plastic”

  1. One word with hyphen …

    K-CUP

  2. silver_yummies

    Beautiful….

  3. [...] As I wrote several weeks back, the credit card plays, led my MA, continue to act constructively on multiple timeframes. I do not have a position in MasterCard yet, but we are looking for a move above $260 for the weekly breakout, as illustrated in that prior post (still in a symmetrical triangle). On a daily timeframe, we can see below that the stock has based out nicely, and is trying to pierce the $253 level. [...]

  4. [...] I first flagged Mastercard for you as a long-term bullish setups back in this post in March 2011, the stock has shot up from $251 to as high as $498 of [...]

Comments are closed.