We’ve seen a nice bullish run in the market in recent weeks.
Inflation has cooled off nicely and the consumer has shown a lot of strength.
Which makes sense.
If inflation is going lower, consumers have more money to spend.
And if consumers are going to spend more, who will benefit?
Companies like Mastercard (MA).
Here’s the chart:
As you can see, MA has had a good 2023.
And it’s recently rebounded strongly off of our 30-week simple moving average.
If it breaks above $418.60, we’ll be at new highs and there won’t be any overhead resistance to hold it back.
The holiday season could lead to more shopping and an MA surge to new highs could lead to a very nice run.
We’ll keep an eye on it.
Happy trading,
— Scott Welsh
P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The chart above uses weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45.
