Master Card Day Trading Stock Symbol MA Looking Strong

Master Card was a killer day trading stock for intraday swing trading strategies back in its IPO days.  Visa (stock symbol V) and American Express (Stock Symbol: AXP) were both heavily traded as well.   You can bet, even with lowering volume (in shares, not trading value) that there are hft software programs that are taking advantage of this action today.

The question is, how do you play it?

This of course depends on your strategy and risk reward analysis, but lets take a peak into some of the trading opportunities out there now.

MaterCard Quick View:

MasterCard Incorporated  provides transaction processing and other payment-related services in the United States and internationally.

It also, it manages and licenses payment card brands, including MasterCard, Maestro, and Cirrus.

The company was founded in 1966 and is headquartered in Purchase, New York.

Mastercard Incorporated
2000 Purchase Street
Purchase, NY 10577
United States – Map
Phone: 914-249-2000
Fax: 914-249-4262
Website: http://www.mastercard.com

Now let’s look at the charts:

Master Card Day Trading Chart All Time

Since 2007, MasterCard has been a monster gaining almost 1500%.  Like most other stocks, it had problems in the 08 financial crises, but since then it has returned to prove itself to a bull market leader.   We aren’t sure there is a long on this time frame because it hasn’t pulled back.  On the other hand, a long here could still be worth while as the trend line does offer some support and a chance to get out.  Many people will be looking at this stock and jumping in.

The only choice we see is between jumping in now or waiting for a pull back.  Jumping in means you will need to trade/take profits/manage loss as a pull back is pretty much inevitable (of course this charts time frame shows we could get to the 890s before this happens, which is counter to our experience)

Looking at the Daily Chart:

HFT Trading Chart with channels

We see that the stock is in the mid part of the lower channel after recently breaking a compression pattern.  Which could be a compression in its overall trading range.  This makes perfect sense since the stock has doubled in price on this chart.  We view that the red line is the best long and the best short and expect there to be much more volume (including high frequency trading volume).  However, long term we are going to keep an eye on the upper green line, if only as an extreme over bought shorting signal.

 Looking at the 6 Month:

6 month mater card swing trading chart

We see a closer look.  Here we see 500 support vs 600 resistance.  Its close enough to break through 600 and show us its power.  If we wait till then and its strong, the next pull back may only come down to 610-615 or possibly higher.   We don’t expect too many day traders to short 599.99 since a breakthrough on a stock like this can cost them there whole month if played improperly as there is a very high risk of slippage to intraday traders.

Conclusion:

MA looks strong here and we could see getting long with a really tight stop at 582-84 with a stop below 580 and closing 50% of the position at 610ish.  This way the remaining shares could be held with a stop loss below 580 ($30) and a profit target of 548-49 for the next half of the shares and another half at 680-700.    If we got stopped out on this short term, there would be a chance to recover some profit on the short side, but we would probably let it pass as we prefer to short weakness over lack of strength.  Either way, due your due diligence and risk reward analysis and see if their is opportunity to fit MasterCard into your overall trading plane.

 

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