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May 12, 2023
A quick look at today: in today's bearish session, the e-commerce marketplaces operator shed around 1.3% in quick fashion, found support around the $1,261.64 level and finally closed at $1,279.67. In contrast, the day's events followed yesterday's session in which the stock closed at $1,296.52.
United States Producer Price Index released earlier showed a marked improvement to 0.2% from the preceding data of -0.4%, but fell short of the 0.3% figure forecast by a consensus of market analysts. Highly important Initial Jobless Claims data from United States beat analyst expectations of 245,000 with a reading of 264,000.
While price action maintains a negative bias, United States CFTC Crude Oil speculative net positions released today at 20:30 UTC with a figure of 216,600, while the previous figure was 214,800.
MercadoLibre made an initial break below its 21 day Simple Moving Average at $1,275.32, a possible indication of a forthcoming negative trend. Price action remains constrained around the key Fibonacci level of $1,268 currently serving as support. If price action breaks below, the next Fib hurdle is $1,252.35. MercadoLibre's upper Bollinger Band® is at $1,326 which indicates a further downward move may follow. Despite this, MercadoLibre could begin to recover as it approaches significant support, now $17.25 away from $1,262.42. Dipping below could be an indication that further losses are ahead.
Several technical indicators are adding weight to the bearish momentum seen today and forecasting MercadoLibre to extend its recent losses.
MercadoLibre was not the only decliner in the consumer discretionary sector; Alibaba went down to $85.34, losing 2.9% after it closed at $87.89 today. Nike went down 1.64%, closed at $122.22. Amazon went down to $110.26, losing 1.71% after it closed at $112.18 today.
Trading mostly sideways for 2 months. The e-commerce marketplaces and online auctions operator has gained 53.81% since its lowest print of $612.7 earlier this year.
