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April 05, 2023
A quick look at today: the e-commerce marketplaces operator hovered around the $1,250 level after closing yesterday at $1,302 and shedding 3.98%, as it reached reached today's session close.
United States Crude Oil Inventories didn't cause a noticeable effect even though it falls short expectations with -3.74 million.
United States Crude Oil Inventories fell short of the -2.33 million projections, with new data of -3.74 million.
Meanwhile, United States ISM Non-Manufacturing PMI (Mar) came out at 51.2, while a consensus of analysts was expecting 54.5. United States ADP Nonfarm Employment Change (Mar) released today at 12:15 UTC with a figure of 145,000, while the previous figure was 261,000.
MercadoLibre made an initial break below its 5 day Simple Moving Average at $1,285, a possible indication of a forthcoming negative trend. Price action remains constrained around the key Fibonacci level of $1,265 currently serving as support. If price action breaks below, the next Fib hurdle is $1,201.66. In contrast, MercadoLibre could begin to recover as it approaches significant support, now $21.41 away from $1,228.64. 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.
MercadoLibre was not the only decliner in the consumer discretionary sector; Amazon falls 2.74% today to close at $103.95. Nike went down 2.26%, closed at $123.69. Home Depot went down to $288.67, losing 2.13% after it closed at $294.96 today.
Looking ahead, ongoing depreciation may be prolonged as tomorrow at 12:30 UTC data for United States Initial Jobless Claims will be released, with an expected decline to 200,000 from the preceding figure of 198,000.
The stock has been trending positively for about a month. This year has been a bright one for the e-commerce marketplaces and online auctions operator after trading as low as $612.7 and going on to appreciate by 48.29% year to date.
