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May 28, 2023
A quick look at Friday: after ending Thursday at $1,250, MercadoLibre went up to $1,296 only to drop back, yet still traded well overall and closed at $1,282.26 Friday.
Chart analysis indicates MercadoLibre could be slowing down soon; it is getting close to the resistance line and is now at $1,302, only $19.7 away. Crossing the resistance line could, however, suggest that further gains are ahead. Trend-focused traders would be interested to note that MercadoLibre made an initial breakout above its 50 day Simple Moving Average at $1,265, a potential indicator of a newly emerging bullish phase. Crossed the $1,268 Fibonacci level, next level is at $1,318. According to asset volatility analysis, Bollinger Band® analysis indicates that current price action is approaching the upper band at $1,343.28, thereby suggesting that MercadoLibre is becoming overvalued.
With market volatility ebbing, the current technical outlook indicates MercadoLibre will remain range-bound for the immediate future.
This rally in MercadoLibre's share price coincided with other consumer discretionary stocks as Amazon traded at $120.11 after closing Friday's trading day at $115 (up 4.44%). Tesla traded at $193.17 after closing Friday's trading day at $184.47 (up 4.72%). Lowe's traded at $206.52 after closing Friday's trading day at $201.04 (up 2.73%).
Trading mostly sideways for 3 months. The e-commerce marketplaces operator reached a significant high of $1,339.62 around 6 days ago but has lost 6.7% since then.
