MELI
📉 MercadoLibre shows concerning technical signals, including trading below its 200-day moving average and a bearish divergence on the weekly chart.
🎯 Analysts suggest a potential further drop to the $1600 level, representing a significant pullback, before a potential recovery.
⏳ While the long-term trend might remain bullish, current momentum is downward, indicating it’s not yet time to buy; waiting for stabilization or a clear reversal pattern is advised.
@marcosemmimfp:
“Meli, how is Meli? Also falling. It’s below the 200-day moving average, and I have divergence on the weekly chart. Ay ay ay ay ay ay ay MercadoLibre. I hope the earnings report goes well for MercadoLibre, because otherwise, I have divergence on the weekly chart. This should come down here to 1600, more or less… Meli, Meli on the weekly chart has divergence. This should fall at least to 1600 to have a good pullback, and 1600 isn’t that much, it’s 14%, but 14% is a lot, right? Because you’re on a weekly chart. On a weekly chart, I don’t want to earn 14%, I want to earn, I want to earn nicely… Market Libre was also on the 200-day moving average, and now it’s below. It doesn’t matter if it’s on the average or not; what matters is the strength of the movement, and that has the strength to keep falling. So the average falls short. And on a weekly chart, what would happen? On a weekly chart, MercadoLibre is still bullish… but I’d see it more around 1600 perhaps. Or waiting. What would waiting be? Since you have a bearish divergence on the daily chart, what should happen is it should rise a little, fall again, make a small range, something similar to this on this side, and then yes, we go up. But not now, because it hasn’t stopped.”
Watch the exact part of the video where @marcosemmimfp talks about MercadoLibre here:
Watch the video on YouTube
Read more articles analyzing MercadoLibre (MELI) at the provided link. MELI stock.
