MercadoLibre stock: buy or sell
Jul 29th, 2021
MercadoLibre stock brief
- MercadoLibre stock exploded 3.61% to close at $1,637.03 on the stock market on Wednesday.
- Price is drawing a scaled uptrend since last May with higher tops and higher bottoms. Up to date, the uptrend made a 29.68% gain since the beginning of this rally. On Wednesday MercadoLibre broke out above $1,584.87 giving an entry point
- The price is currently over the upper Bollinger band, which usually indicates a near-term correction
- On Wednesday broke out above its latest top at $1,584.87
- On July 22 broke out above its latest top at $1,584.87
- 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?
In the current situation of MercadoLibre there is just one buy setup eligible:
Uptrend buy setup
MercadoLibre stock continues to trend higher since last May and marked an amazing 29.68% gain. Price marked a pull back in this uptrend at $1,471.23 on July 19, and since then it bounced up a 11.27%. Price just broke out above the entry point at $1,584.87, but it can be traded. If price climbs beyond $1,664.11, you should not chase the price and wait for another pullback. If you decide to enter this trade, the suggested stop loss is at $1,427.09
|Buy setup||Buy point||Stop loss||Risk|
|Uptrend buy setup||$1,584.87||$1,427.09||9.96%|
Should I sell MercadoLibre stock?
"To sell or not to sell", if you are holding MercadoLibre stock?. Trading strategies prevent us from making impulsive decisions based on our personal feelings or the buzz that surrounds the market. Our trading system selects very simple setups to guide us on when is the best moment to sell our shares. Be aware that these setups should not be used for selling short MercadoLibre stock
As a golden rule, you must never mantain an investment that leads to higher than expected losses by the time of the buy. When to sell shares always has to be dictated by the stop-loss (automatic or manual)
Is it time to sell MercadoLibre stock?
Currently, MercadoLibre stock doesn't match any of our preferred sell setups, so if you own MercadoLibre stock and your operation is in profit probably is not time to sell now
In the last month we couldn't find any rating for MercadoLibre
MercadoLibre stock analysis
Since last May, MercadoLibre has been drawing an uptrend that by now marked an amazing 29.68%. The chart shows higher peaks and higher lows, and along the way gave some entry points for those who wanted to invest. Latest pullback was on July 19, when price bounced at $1,471.23. On Wednesday, MercadoLibre broke out above its last top ($1,584.87) offering a good buying opportunity
Supports and resistances
The current resistances are:
The current supports are:
Price levels above or below the Bollinger Bands mean that the price has followed a strong trend that has led to extreme upward or downward values. In this case, the price is over the upper band, which should mean a near-term correction (at least) until it is under the band
Relative strength index
The RSI dropped below the overbought level of 70 in late June after just crossing to the overbough zone for 1 day (weak signal). The RSI value on Wednesday was 66.9. Since that level was lost, MercadoLibre shares exploded a 3.41%
MercadoLibre stock price history
MercadoLibre went public on Aug 10th, 2007 priced at $21.32 per share1. Since then, MELI stock surged by 7,578.38%, with an average of 582.95% per year. An investment of $1,000USD on Aug 2007 would be valued $76,783.77 nowadays.
1: Adjusted price after possible price splits or reverse-splits
Price target for MercadoLibre stock
Nobody can predict how much a share will be priced tomorrow. However, many stock price forecasts are published every day by banks, financial institutions and independent analysts.
The following table shows the price predictions published by analysts in the last month. Again, these predictions are not direct recommendations for small traders and must not be followed blindly.
We don't have any target price posted in the previous 4 weeks for MercadoLibre.
Earnings and financials
MercadoLibre, Inc. ($MELI) reported quarterly earnings of $-0.68 per share last May, poorly undercutting the Market consensus estimate of $-0.01 per share. This Q1 report means an earnings surprise of -6,700.00%. Forecasted revenue was $1.1 billion but MercadoLibre highly uplifted by 20.88%, posting $1.4 billion.This compares to Earnings of $-0.44 per share a year ago, so current EPS is a drop of -54.55%. Looking at revenue, figures exploded a 111.39% compared to $6.5B same quarter last year.
MercadoLibre ($MELI) will host the Q2 earnings call next Monday. Wall Street estimates of $0.12, compared to previous quarter that made $-0.68.
Please read:The opinions written in this post are personal and not recommendations for you to buy or sell shares. The author of this article does not have an understanding of the specific conditions of the reader, his or her 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 Opinions are provided for learning purposes only
|Wednesday, July 28th, 2021|
|Day range||$1586.52 - $1640.3|
|Average true range||$58.25|
|50d mov avg||$1,462.94|
|100d mov avg||$1,481.90|
|200d mov avg||$1,538.68|
|Earnings date||August 9th, 2021|