MasterCard ($MA) : Bearish Tweezer Top

MA_TweezerTop_Bearish

MasterCard ($MA) has been lagging behind its competitors in many areas in the market. More importantly, in the areas of innovation and new markets, it is now facing competition not just from traditional competitors like VISA but also the likes of PayPal, AliPay etc.

The chart shows a bullish run up of MasterCard with good strong volume breaking out of the thin Kumo resistance with a gap.

What troubles me is the candle reversal at the top. Almost the very next day after reaching its peak, $MA reverse at the same peak price level and the bears seems to be taking hold of the situation and reverse the whole gains in the same day. It could be short term traders cashing in their profits. After, a sell down could easily push it to the low $80 range.

To quote Bulkowski definition on Tweezers Top:

Tweezers top candlesticks are simple to find in a historical price series. Just look for two adjacent candles with the same high price in an uptrend. Candle theory says that the pair is supposed to be a bearish reversal because it illustrates overhead resistance, but my tests show that tweezers tops actually act as bullish continuations 56% of the time. That performance is, of course, near random. Thus, expect the breakout to be in any direction. With an overall performance ranking of 81 (where 1 is best), that suggests the price trend after the breakout is weak.

Trade with care.

 

$SPX . Doji and bounce off.

Following up on my previous post that an Ascending Triangle is forming.

Yesterday’s price action has give us a confirmation that the price level has bounce off the Tenkan sen which is near the trendline of the triangle.

On top of that, we have a doji formed.

This is a good setup and the next move will be to see if it pierce through the kumo on the Ichimoku chart for a year end rally.