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June 08, 2023
A quick look at yesterday: the e-commerce marketplaces and online auctions operator dropped 3.68% early on and traded close to the $1,208.29 level.
Crude Oil Inventories in United States fell short of market expectations (1 million) with a reading of -451,000, continuing the decline from the previous figure of 4.49 million.
Meanwhile, United States Cushing Crude Oil Inventories released yesterday at 14:30 UTC with a figure of 1.72 million, while the previous figure was 1.63 million. United States Trade Balance (Apr) came out at -74.6 billion, while a consensus of analysts was expecting -75.2 billion.
Chart analysis indicates MercadoLibre could begin to recover as it approaches significant support, now $22.02 away from $1,186.27. Dipping below could be an indication that further losses are ahead. Trend and momentum analysis indicates that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Price action remains constrained around the key Fibonacci level of $1,225.37 currently serving as support. If price action breaks below, the next Fib hurdle is $1,196.74. Analysis based on the asset volatility indicates that Bollinger Bands® shows an indication of recovery: the lower band is at $1,206.82, a low enough level to, generally, suggest that MercadoLibre is trading below its fair value.
All in all, the technical analysis suggests MercadoLibre has no clear-cut direction.
MercadoLibre was not the only decliner in the consumer discretionary sector; Amazon drops 4.25% yesterday to close at $126.61. Toyota went down 2.13%, closed at $148.48.
On the other hand, positive performances could be seen by looking at other consumer discretionary stocks as Home Depot gained 1.93%, as it traded at $301.7.
Looking ahead, ongoing depreciation may be prolonged as United States Initial Jobless Claims expected to decline to 235,000 while its preceding data was 232,000, data will be available today at 12:30 UTC.
The e-commerce marketplaces and online auctions operator is now trading 6.36% below the significant high of $1,339.62 it set around 17 days ago.
