Working Money magazine.  The investors' magazine. Advantage



Article Archive | Search | Subscribe/Renew | Login | Free Trial | Forgot ID?



MasterCard Firms At Support

01/22/08 10:33:33 AM
by Arthur Hill

After a decline in the first two weeks of January, MasterCard became oversold and then firmed at support. Look for a range breakout to trigger a rally.

Security:   MA
Position:   Accumulate

Figure 1 shows a broken resistance gap turn to support, while Figure 2 shows that the stock firmed over the last four days (blue circle). These candlesticks have small real bodies and this shows indecision. The open and the close formed the body. A small body indicates little change (indecision) from the open to the close. In addition, an inverted hammer formed three days ago and a spinning top formed two days ago. The stock is clearly trying to firm. A move above 182 would break the four-day range and call for a rally off support. Failure to hold this breakout and a move below the range lows would be bearish.

FIGURE 1: MA, DAILY. Here, the chart shows broken resistance and a gap turn support.
Graphic provided by: TeleChart2007.
A second signal can be generated using the relative strength index (RSI). The indicator became oversold with the move below 30 and remains oversold (blue box). I would consider MA both oversold and bearish as long as the RSI holds below 30. Remember, a stock can become oversold and remain oversold if the downtrend continues. A move above 30 would end oversold conditions and pave the way for a bounce in the stock.

FIGURE 2: MA, DAILY. The stock firmed over the last four days (blue circle).
Graphic provided by: TeleChart2007.

Arthur Hill

Arthur Hill is currently editor of, a website specializing in trading strategies, sector/industry specific breadth stats and overall technical analysis. He passed the Society of Technical Analysts (STA London) diploma exam with distinction is a Certified Financial Technician (CFTe). Prior to TD Trader, he was the Chief Technical Analyst for and the main contributor to the ChartSchool.

Title: Editor
Address: Willem Geetsstraat 17
Mechelen, B2800
Phone # for sales: 3215345465
E-mail address:

Traders' Resource Links has not added any product or service information to TRADERS' RESOURCE.

Click here for more information about our publications!

Comments or Questions? Article Usefulness
5 (most useful)
1 (least useful)


Date: 01/24/08Rank: 5Comment: 

S&C Subscription/Renewal

Request Information From Our Sponsors 

DEPARTMENTS: Advertising | Editorial | Circulation | Contact Us | BY PHONE: (206) 938-0570

PTSK — The Professional Traders' Starter Kit
Home — S&C Magazine | Working Money Magazine | Advantage | Online Store | Traders’ Resource
Add a Product to Traders’ Resource | Message Boards | Subscribe/Renew | Free Trial Issue | Article Code | Search

Copyright © 1982–2021 Technical Analysis, Inc. All rights reserved. Read our disclaimer & privacy statement.