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February 28, 2023
Yesterday at a glance: ending Friday at $1,157, the e-commerce marketplaces and online auctions operator rallied 2.26% yesterday and stayed at the $1,183 level.
United States Consumer Confidence data will be released today at 15:00 UTC, with an expected improvement to 108.5 (previous figure was 107.1).
MercadoLibre's uptick comes amid good United States macroeconomic data released during the day — United States Pending Home Sales improved upon its previous reading of 1.1% with a new data release of 8.1%. United States Core Durable Goods Orders beat the 0.1% projections, with 0.7%.
Meanwhile, Core Durable Goods Orders in United States fell short of market expectations (-4%) with a reading of -4.5%, continuing the decline from the previous figure of 5.1%.
Despite posting gains on yesterday, MercadoLibre slid below its 21 day Simple Moving Average at $1,156.27 during the last session — an early indicator that a negative trend could be emerging. Bollinger Band® analysis indicates that current price action is approaching the upper band at $1,227, thereby suggesting that MercadoLibre is becoming overvalued. MercadoLibre could be slowing down soon as it approaches resistance at $1,199. Of course, crossing it might suggest further gains are ahead.
Despite basking in an uptrend and bullish intraday sentiment, chart analysis indicates MercadoLibre is set for a reversal in the coming days.
This rally in MercadoLibre's share price coincided with other consumer discretionary stocks as Tesla gained 5.46%, as it traded at $207.63. Lowe's traded at $204.24 after closing yesterday's trading day at $201.54 (up 1.34%). Pinduoduo traded at $86 after closing yesterday's trading day at $83.72 (up 2.72%).
Yesterday's gains have given market bulls further impetus to expect strong macro data going forward, such as United States Consumer Confidence is projected to outperform its last figure with 108.5. It previously stood at 107.1; data will be released today at 15:00 UTC.
Furthermore, the market is looking at United States Crude Oil Inventories expected to decline to 440,000 while its preceding data was 7.65 million, data will be available tomorrow at 15:30 UTC.
Also worthy of note, United States ISM Manufacturing PMI (Feb) scheduled to come out tomorrow at 15:00 UTC.
The e-commerce marketplaces operator has managed to gain 44.61% so far this year despite trading at lows around $612.7 previously.
