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Mastercard Inc. - (MA) - August 25, 2023

Today, we are going to talk about Mastercard (MA) which is the first time we have commented on this name. Mastercard entered the Favored Zone in the SIA S&P 100 Index Report at a price of $368.53 on April 25, 2023, and has held the favored zone since then while also holding onto its positive SMAX. Now the shares are at $397.67 representing an 7.9% increase in just 4 months time. The shares currently occupy the #19 spot in the S&P 100 Index, up 1 spot in the past quarter. Mastercard is the second largest payment processor in the world. It operates in over 200 countries and processes transactions in over 150 currencies. In looking at the attached Candlestick chart of Mastercard Inc, we see that the shares found a bottom at around the $285.00 area back in October of last year which also coincided with a bottom in November 2020 creating a nice double bottom. Since last October’s bottom the shares rallied very nicely breaking above its 50 day moving average later in October and the 200 day moving average in November indicating the accumulation phase had begun. A brief pullback ensued in the first quarter of this year, but it held support at the 200 day moving average before rebounding nicely with a pattern of higher highs and higher lows. Currently the shares are finding support at the 50 Day MA at the $390.00 level.

In the attached Point and Figure Chart at a 2% Scale, we see the share’s break above a very important prior resistance level at $395.30 dating back to May of 2021. This is very bullish as the shares bumped its head at this previous resistance point four times before finally breaking through earlier this month achieving all-time highs. Currently the shares exhibit a bullish Spread Triple Top pattern. Next potential resistance can be found at approximately the $445.17 area and, above that, the $500 psychological round number. To the downside, support is at its 3-box reversal of $372.50 and, below that, $330.77. With an SMAX Score of 8 out of 10, MA is exhibiting near term strength against all the asset classes.

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