Triple Confluence in MercadoLibre
MercoLibre’s been sliding for almost two months, but there could be signs of a turn.
The first pattern on today’s chart is the $1095.34 level. It marked the high last summer and was near the low in mid-February. MELI pulled back and bounced at it this week, a potential sign that support is in place.
Second, that level closely matches the 200-day simple moving average (SMA).
Third, the price zone is near a 50 percent retracement of its rally since the end of December.
Those three signals, occurring so near each other, are an example of potentially significant confluence.
Next, rate of change exhibited positive divergence on Monday’s low.
Finally, macro conditions may favor the global e-commerce company given the recent weakness in the U.S. dollar.
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TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
The first pattern on today’s chart is the $1095.34 level. It marked the high last summer and was near the low in mid-February. MELI pulled back and bounced at it this week, a potential sign that support is in place.
Second, that level closely matches the 200-day simple moving average (SMA).
Third, the price zone is near a 50 percent retracement of its rally since the end of December.
Those three signals, occurring so near each other, are an example of potentially significant confluence.
Next, rate of change exhibited positive divergence on Monday’s low.
Finally, macro conditions may favor the global e-commerce company given the recent weakness in the U.S. dollar.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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