Upcoming Earnings

Mastercard Incorporated (ticker: MA) is scheduled to report earnings before the market opens on 31 July. The consensus Earnings Per Share (EPS) estimate for the fiscal quarter ending June 2024 is $3.51. The reported EPS for the same quarter a year prior was $2.89.

Active Downtrend

Basic trend studies demonstrate that the stock has been gradually trending lower since forming an all-time high of $490.00 in late March of this year. Price action has been working between two parallel downward lines that make up a descending channel (from $468.15 and $436.90).

What is interesting is that the stock recently bounced from the lower side of the descending channel, with the pullback testing the Ichimoku Conversion Line (blue at $442.15). Also, having the Base Line circling just above this line (red at $445.97) offers traders a resistance area to consider bearish scenarios in line with the downtrend.

Also situated near the Conversion Line and Base Line resistance zone is the Ichimoku Cloud between the Leading Span A (light green at $444.06) and the Leading Span B (light orange at $446.90).

Price Direction?

Today’s analysis reveals that Mastercard is demonstrating a bearish stance ahead of earnings tomorrow. The pullback from the lower channel support edge, therefore, may be viewed as a sell-on-rally signal, particularly at the underside of the Conversion Line/Base Line resistance area and the neighbouring Ichimoku Cloud.

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