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June 19, 2023
A quick look at Friday: in Friday's bearish session, the e-commerce marketplaces and online auctions operator shed around 2.37% in quick fashion, found support around the $1,192.6 level and finally closed at $1,194.74. In contrast, the day's events followed Thursday's session in which the stock closed at $1,223.77.
MercadoLibre could begin to recover as it approaches significant support, now $11.18 away from $1,183.56. Dipping below could be an indication that further losses are ahead. Despite being in the red so far in the current trading session, MercadoLibre peaked above its 3 day Simple Moving Average around $1,215 — typically an early indicator of a new bullish trend beginning to emerge. MercadoLibre's lower Bollinger Band® is at $1,168.79, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains.
Technical analysis indicates that MercadoLibre (currently on a downtrend) might reverse course and start pointing upward in the short term.
MercadoLibre was not the only decliner in the consumer discretionary sector; Toyota went down 2.28%, closed at $168.18. Walt Disney went down 1.74%, closed at $92.94.
On the other hand, positive performances could be seen by looking at other consumer discretionary stocks as Nike traded at $113.59 after closing Friday's trading day at $112.41 (up 1.05%).
Furthermore, United States Building Permits (May) is expected tomorrow at 12:30 UTC.
The e-commerce marketplaces and online auctions operator has fallen back around 8.65% over the past 28 days, from a notable high of $1,339.62.
