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April 21, 2023
Tough session sees the e-commerce marketplaces operator shedding 1.06% in early trade
MercadoLibre is currently trading at $1,280 following the release of Services PMI data from the United States.
Meanwhile, United States Services PMI came out at 53.7, while a consensus of analysts was expecting 51.5. United States Existing Home Sales (Mar) released yesterday at 14:00 UTC with a figure of 4.44 million, while the previous figure was 4.55 million. United States Philadelphia Fed Manufacturing Index (Apr) released yesterday at 12:30 UTC with a figure of -31.3, while the previous figure was -23.2.
MercadoLibre made an initial break below its 10 day Simple Moving Average at $1,287.4, a possible indication of a forthcoming negative trend. In contrast, MercadoLibre could begin to recover as it approaches significant support, now $3.28 away from $1,283.28. Dipping below could be an indication that further losses are ahead.
In the short term, MercadoLibre is expected to maintain its recent downtrend and continue spiralling lower.
In the meantime, negative performances are also seen in other consumer discretionary stocks as after closing the previous session (yesterday) at $90.74, Alibaba lost $1.93 and is trading around $88.81.
Positive performances can be seen by looking at other consumer discretionary stocks as Amazon gained 3.14%, currently at $107.06. Walt Disney added 0.62% to its value, now trading at $98.68.
The stock has been trending positively for about 2 months. The e-commerce marketplaces operator has fallen back around 2.1% over the past 3 days, from a notable high of $1,321.47.
