Looking at the technical picture of the Mastercard Inc. (NYSE: MA) stock, we can see that from around the beginning of November, the share price has been drifting lower, trading below a short-term downside resistance line taken from the high of November 9th. However, the stock is not forming any lower lows. Instead, it is balancing above a support area, between the 323.80 and 325.55 levels, which mark the lows of November 20th and December 11th. Although there is a chance to see a further move south, we would prefer to see a push through that support area first.
If, eventually, MA falls below that support area, this will confirm a forthcoming lower low, potentially opening the door for further declines. That’s when we will start aiming for the 319.20 obstacle, a break of which could clear the way to the 310.08 level. That level marks the low of November 6th.
The RSI and the MACD seem to support the above scenario, as the RSI is pointing slightly lower and currently sits below 50. The MACD is also pointing lower, as it sits below zero and its trigger line. The two oscillators show increasing downside speed, which means that more downside might be in the works.
Alternatively, if the share price rises above the aforementioned downside line and then climbs above the 341.55 barrier, which is the high of last week, this may invite new investors into the game. MA could then travel to the 348.00 zone, which if fails to provide resistance and breaks, may clear the way to the 356.35 level, marked by the highest point of November.
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