MercadoLibre stock: buy or sell
Updated on:
Jan 27th, 2021
1
MercadoLibre stock brief
- After hitting new highs last Thursday, MercadoLibre closed on Tuesday at $1,807.74 sinking a -3.84%
- The stock is configuring an uptrend pattern since March 2020, when it bottomed at $422.22. This uptrend marked a 328.15% gain
- 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 not any eligible buy setup. This doesn't mean $MELI will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell MercadoLibre stock?
When is it time to sell MercadoLibre stock?. Trading strategies prevent us from making rash decisions based on our personal sentiments or the noise surrounding the market. Our trading system selects very simple setups to guide us on when is the best time to sell a stock. Be aware that these setups are not intended for selling short $MELI stock
A guiding principle is that you should never keep an investment that results in higher than expected losses at the time of the buy. When to sell your stock always has to 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 profit can keep their positions
MercadoLibre ratings
In the last 30 days, 2 brokerage ratings were published for MercadoLibre
| Brokerage firm | Rating |
|---|---|
| Jan 19th, 2021 | |
| HSBC | |
| Jan 20th, 2021 | |
| Citigroup | Neutral |
MercadoLibre stock analysis
Since in March 2020, MercadoLibre has been printing an uptrend that by now marked an amazing 328.15%. The chart shows higher highs and higher troughs, and along the way provided some entry points for those who wanted to trade in. Latest pullback was last November, when price bounced at $1,219.14. Currently, the price swings in a consolidation between its last top ($2,020.00) and its last bottom ($1,219.14)
$MELI at new All-time Highs
Last Thursday, MercadoLibre reached all-time highs (ATH) again at $2,020.00. It's the 4th time in the last 10 sessions, marking an important rally
SMAs overview
Supports and resistances
The current resistances are:
The current support levels are:
Bollinger bands
Since the price surpassed the upper band on January 20, the price sliced by 9.24%
Relative strength index
The RSI dropped below the overbought level of 70 on Monday after just crossing to the overbough zone for 1 day (weak signal). The RSI reading on Tuesday was 54.12
MercadoLibre stock price history
MercadoLibre went public priced at an adjusted price1 of $21.32 on Aug 2007. Since then, MELI stock surged by 8,379.08%, with an average of 644.54% per year. An investment of $1,000USD at that time would be valued $84,790.81 today.
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. However, many stock price forecasts are published every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, brokerage institutions publish their price forecasts based on the stock price action and the company fundamental data. Most of these estimates follow the release of new financial data by the company, and many times. If you are a small trader you must not trade based on these projections.
The average price target for MercadoLibre stock calculated from the table below is $2,125.00. That is a 17.55% than the current price ($1,807.74).
| Brokerage firm | Price target |
|---|---|
| Jan 19th, 2021 | |
| HSBC | $1,800.00 → $2,100.00 |
| Jan 20th, 2021 | |
| Citigroup | $1,300.00 → $2,150.00 |
Earnings and financials
MercadoLibre, Inc. ($MELI) reported quarterly earnings of $0.28 per share last November, strongly improving the Market consensus estimate of $0.17 per share. This quarterly report means an earnings surprise of 64.71%. Company's revenue resulted of $1.1 billion in contrast to $971.4 million estimated by market consensus.
This compares to Earnings of $-2.96 per share a year ago, so reported EPS means an improvement of 109.46%. Revenue exploded a 85.02% on an annualized basis in the , from $6.0B to $11.2B last quarter.MercadoLibre ($MELI) is posting Q4 earnings report next Monday. Market forecasts of $0.02, compared to previous quarter that made $0.28.
MercadoLibre performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| MercadoLibre ($MELI) | 8.10% | 38.70% | 70.10% |
Important:
The comments published in this post are personal and not recommendations for you to buy or sell shares. The author of this paper 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 Viewpoints are provided for informational motives onlyMercadoLibre summary
| Tuesday, January 26th, 2021 | |
|---|---|
| Open | $1900.76 |
| Close | $1807.74 |
| Day range | $1781.21 - $1908.88 |
| Previous close | $1880 |
| Session gain | -3.84% |
| Average true range | $109.04 |
| 50d mov avg | $1,625.04 |
| 100d mov avg | $1,396.02 |
| 200d mov avg | $1,157.80 |
| Earnings date | February 8th, 2021 |