Time To Dump Your MasterCard…….Stock

Credit card stocks had a rocky summer before breaking higher after earnings. But there are mounting signs that the move higher was overdone and a pullback is in order. Some have already fallen. On that looks ripe to succumb to gravity is Mastercard, $MA.

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Mastercard moved higher out of a symmetrical triangle pattern. The pop rode higher over 85 where it printed a Tweezers Top, the first sign of a reversal. That confirmed lower the next day. The RSI also moved into overbought territory and is now pulling back. It is extended from the SMA’s as well. There is some support in the 83.15 to 83.60 area but were it to break that a Tower Top is a real possibility with a retracement back to the 76 to 77.50 area. Keep an eye on this.

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