Technical Lines in Focus for Mercadolibre Inc (MELI) as Pivot Hits $570.14

Studying the short-term chart on shares of Mercadolibre Inc (MELI), we have noted that the current 20-Day Bollinger Bands signal is presently reading Buy. This indicator may be used to assist with identifying oversold and overbought conditions. The signal direction is currently Strengthening. Following another signal, we note that the 10-day moving average Hilo channel reading is currently Buy. This indicator calculates the moving average based on highs/lows rather than the closing price. The direction of this signal has been spotted as reading Strengthening.

Investors are always striving to locate the next great stock to add to the portfolio. Finding that next winner may involve some dedicated research and perseverance. Sorting through the immense amount of information about public companies can be a chore. Many sharp investors will attack the equity markets from many various angles. This may encompass keeping close tabs on fundamental and technical data. This may also include monitoring analyst opinions and tracking institutional transactions.  

Investors may be tracking the average range on shares of Mercadolibre Inc (MELI). The stock currently has a 9 day average range of 24.83. This a moving average of trading ranges over a 9 day time frame. With this value, higher numbers tend to occur at market bottoms while lower values may be spotted during extended sideways periods. Looking at the 9 day relative strength reading, we can see that the value is currently 74.35%. This technical momentum indicator compares the size of recent gains to recent losses helping to identify possible overbought and oversold conditions.

Shifting gears, we see that the opinion signal for the current session is 100% Buy for Mercadolibre Inc. Investors may also be watching the strength and direction of the opinion signals. The opinion direction is presently Strongest. This is a measurement over the last three trading sessions that gives an indication of whether the latest recent price movement is following the signal. A Buy or Sell signal with a “Strongest” direction indicates that the signal is gaining strength. The opinion strength signal is presently reading Maximum. This is a longer-term measure verse the historical strength.

Mercadolibre Inc (MELI) currently has a standard deviation of -0.46. Standard deviation is defined as a measure of the dispersion from the mean in regards to a data set. When dealing with financial instruments, the standard deviation is applied to the annual rate of return to help measure the volatility of a particular investment. Watching the standard deviation may help investors see if a stock is primed for a major move. The stock’s current pivot is 570.14. The pivot point is typically used as a trend indicator. The pivot is the average of the close, low, and high of the prior trading period.

Mercadolibre Inc (MELI)) currently has a 6 month MA of 399.23. Investors may use moving averages for different reasons. Some may use the moving average as a primary trading tool, while others may use it as a back-up. Investors may be watching when the stock price crosses a certain moving average and then closes on the other side. These moving average crossovers may be used to help identify momentum shifts, or possible entry/exit points. A cross below a certain moving average may signal the beginning of a downward move. On the other end, a cross above a moving average may indicatet a possible uptrend. Investors may be focused on multiple time periods when studying moving averages. Zooming out a bit further, we have noted that the 9 month moving average is currently 375.59.

Investors are constantly trying to make smart moves in the stock market. Taking stock of personal strengths and weaknesses can help the investor attack the market with heightened focus. Often times, individuals may fall into traps that could have been avoided. Coming up with a sound investment plan and setting realistic expectations may help the novice investor become better prepared and focused. Positive returns are attainable with the proper preparation and dedication. Investors working with a longer-term plan might be approaching the stock market from a completely different angle than a shorter-term trader. Investors who plan to be in the market for a long period of time may not be as concerned about the day to day fluctuations as short-term traders.