Harry has posted a Charts of the Day video on MELI at TheTechTrader site noting: Mercadolibre, Inc. (MELI) is a very negative-looking chart. The channel broke Oct, it formed a breakaway gap to the downside, then formed a bear wedge, broke down, formed a smaller bear wedge, broke down again, formed a larger bear wedge, and then broke down again on Monday, down a whopping 4.56, or 4.6%. It could be that it came down so far, so fast, and in multiple wedges, that it has some decent support here. Look for some kind of snapback move, but it could be headed lower. The target is set at 80.
It was a perfect call on MELI...most of the hedges are short this one with conviction! A batch of economic data released today brought comfort to those who are betting on stronger growth.
Retail sales(In the USA) in December rose 0.2%, or 0.7% excluding autos, as Americans bought more clothes and food during the holidays, shopping at retailers' brick-and-mortar stores as well as online, according to government data. The numbers were mildly better than economists expected.
I feel the same will be true when MELI posts it's Earnings next Month too! Mobile,Pago,and the New selling Platform along with New registered users will offset almost all the headwinds and reassure everyone that all is intact and moving the way it should in LA!
Shorts will have to cover leading into the 4th Qtr Earnings on MELI.....soon!