| 
May 18, 2023
A quick look at yesterday: the e-commerce marketplaces and online auctions operator rallied 3.51% and maintained $1,320.
United States Initial Jobless Claims data will be released today at 12:30 UTC, with an expected improvement to 254,000 (previous figure was 264,000).
MercadoLibre's uptick comes amid good United States macroeconomic data released during the day — United States Crude Oil Inventories beat the -920,000 projections, with 5 million.
Meanwhile, United States Building Permits (Apr) released yesterday at 12:30 UTC with a figure of 1.42 million, while the previous figure was 1.44 million. Fresh 20-Year Bond Auction data from United States came out at 3.954.
MercadoLibre made an initial breakout above its 5 day Simple Moving Average at $1,287.46, a potential indicator of a newly emerging bullish phase. Price action remains constrained around the key Fibonacci level of $1,318 currently serving as resistance On the other hand, note that MercadoLibre is $21.66 away from testing key resistance at $1,341.81. Peaking above this level could inspire market bulls and open the path to further gains. Bollinger Band® analysis indicates that current price action is approaching the upper band at $1,328.25, thereby suggesting that MercadoLibre is becoming overvalued.
According to technical analysis, it looks as if MercadoLibre likely to continue pointing upward in the short term.
This rally in MercadoLibre's share price coincided with other consumer discretionary stocks as Lowe's traded at $207.2 after closing yesterday's trading day at $199.22 (up 4%). Home Depot added 3.56% to its value, and traded at $292.39. Walt Disney gained 1.97%, as it traded at $92.77.
Yesterday's gains have given market bulls further impetus to expect strong macro data going forward, such as United States Initial Jobless Claims is projected to outperform its last figure with 254,000. It previously stood at 264,000; data will be released today at 12:30 UTC.
Furthermore, the market is looking at United States Philadelphia Fed Manufacturing Index (May) is scheduled for today at 12:30 UTC. United States Existing Home Sales (Apr) is expected today at 14:00 UTC.
The stock has been trending positively for about 2 months. This year has been a bright one for the e-commerce marketplaces operator after trading as low as $612.7 and going on to appreciate by 63.23% year to date.
