Mastercard stock is one of the leaders in transaction processing and other payment-related products, together with Visa and American Express. The company provides transaction processing and other payment-related products and services in the United States and internationally.
Mastercard stock price has lost almost 20% since last December 2021, when a supply imbalance located around $266 was reached. Buying shares of Mastercard stock is not a good idea given that there is brand new bearish price action and a supply level took control of the stock a few months ago.
Will Mastercard stock keep dropping and losing as much of its value as hundreds of other American stocks did? That’s what we are expecting. This is a good moment to use bearish option strategies. It’s not a good idea to buy Mastercard stock shares since we expect Mastercard stock prices to keep on dropping after breaking last December’s 2021 lows.
As supply and demand traders, we do not need to pay attention to the news or fundamental analysis. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why do you see positive earnings, the underlying stock drops like a rock or a negative earnings announcement, and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances in gaining control.
Unless you are doing very short-term trading and scalping, you should not worry about fundamentals or earnings announcements on Mastercard Inc..
Trading is just waiting for the right trigger points and scenarios to present themselves, this game has a name, and it’s called the waiting game. We must patiently wait for the correct scenarios and setups to happen and wait for the price to pull back or dip into the price levels we want to trade. These price levels are made of supply and demand imbalances in our case. You can use these imbalances to plan your trades in lower timeframes.
Join our supply and demand stock trading course to learn how to use our supply and demand trading strategy.