MELI Stock Chart Breakout, A Thing of Beauty
If there was ever a time to use gorgeous as associated with the stock market, Mercadolibre MELI stock chart fills the description.
MELI is an internet e-commerce website that provides an online marketplace and electronic payment service for latin america. The stock went public for $18 bucks on August 10th, 2007 and setup a phenomenal base from October to early December. The first major breakout came on December 10th with heavy institutional support and the stock hasn’t looked back since surging all the way from $48 to a close last Friday of $78.81.
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The uptrending 50 day moving average, with the tightening of price action near all time highs, then like a bat out of hell the move to $50 on December 10th was your screaming buy signal. Sadly, I didn’t even know the company existed then. Nonetheless, it makes for a great post.
The recent price resistance around $80 suggests a rest may be in order, but keep your eyes on MELI for any signs of weakness as it may be a great buying opportunity.
I’m looking for an entry point into this one, and as it sells off with lower volume like it has just recently, it is looking better and better for a buy pretty soon.