MercadoLibre stock: buy or sell
Updated on:
Apr 22nd, 2021
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MercadoLibre stock brief
- MercadoLibre closed on Wednesday at $1,576.99 after exploding a 2.84% and broke a streak of 3 sessions in red.
- MercadoLibre, Inc. operates online commerce platforms in Latin America.
Should I buy MercadoLibre stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $MELI stock a buy?
Currently, MercadoLibre stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for $MELI in the next few days, or that it may not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell MercadoLibre stock?
When you are a novel trader and you own a stock with some profit, it's really hard to decide the best moment to sell and get your profits. Trading strategies give us the ability us to avoid rash decisions based on our personal emotions or the noise surrounding the market. When selling, as well as buying, detailed strategies are very easy to use but are only valid for selling shares you already own, not for selling short MercadoLibre stock
As a golden rule, you should not hold a trade that yields greater losses than those expected at the time of the buy. The moment to sell your stock should always be ruled by the stop-loss (automatic or manual)
Is it time to sell MercadoLibre stock?
In the current situation of MercadoLibre there is not any eligible sell setup, so MercadoLibre stock holders with operations in green can keep their positions
MercadoLibre ratings
In the last 30 days, just one analyst rating was published for MercadoLibre
| Brokerage firm | Rating |
|---|---|
| Mar 31st, 2021 | |
| Wolfe Research | Buy |
MercadoLibre stock analysis
SMAs overview
Supports and resistances
The current resistance levels are:
The current support levels are:
Bollinger bands
Relative strength index
The RSI crossed up the oversold level of 30 in early March after just being in the oversold zone for a single day (what can be considered a strength sign). The RSI value on Wednesday was 52.75. Since that level was crossed up, MercadoLibre shares exploded a 15.15%
MercadoLibre stock price history
MercadoLibre started trading priced at an adjusted price1 of $21.32 on Aug 2007. Since then, MELI stock has risen by 7,296.76%, with an average of 561.29% per year. An investment of thousand dollars at that time would be valued $73,967.64 nowadays.
1: Adjusted price after possible price splits or reverse-splits
Price target for MercadoLibre stock
How much a stock will be priced tomorrow or next week is quite unpredictable. Banks and financial organisations post their analysis predicting how a particular stock will performance in the future.
The following table shows the price target released by financial institutions for the last 30 days. If you are a small investor you shouldn't buy or sell based on these forecasts.
In the previous month we couldn't find any price target published for MercadoLibre stock.
| Brokerage firm | Price target |
|---|---|
| Mar 31st, 2021 | |
| Wolfe Research | Not available |
Earnings and financials
In early March, MercadoLibre ($MELI) hosted the financial call and released the report. MercadoLibre reported earnings of $-1.02 per share on sales of $1.3 billion. The Wall St estimate was $0.05 per share on revenue of $1.2 billion.
In comparison, the EPS for the same quarter last year was $-1.11, so reported EPS means a gain of 8.11%. Turnover skyrocketed a 96.85% on an annualized basis in the , from $6.7B to $13.3B last quarter.MercadoLibre ($MELI) is hosting the earnings call next Tuesday. Expected for this quarter is $0.04, compared to $-1.02 that was reported for Q4.
MercadoLibre performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| MercadoLibre ($MELI) | 6.60% | -21.90% | 21.50% |
Disclaimer:
The opinions written in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this text does not know the specific scenarios of the reader, his or her own finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are published for learning purposes onlyMercadoLibre summary
| Wednesday, April 21st, 2021 | |
|---|---|
| Open | $1514.34 |
| Close | $1576.99 |
| Day range | $1514.34 - $1578.57 |
| Previous close | $1533.41 |
| Session gain | 2.84% |
| Average true range | $65.54 |
| 50d mov avg | $1,598.66 |
| 100d mov avg | $1,659.80 |
| 200d mov avg | $1,409.77 |
| Earnings date | May 4th, 2021 |