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Will Mastercard Recover?

|Includes: Mastercard, Inc. (MA)

Shares of MasterCard, Inc. (MA) closed the trading session at $422.98 below calculated support at $433.84. The stock broke down technically, raising concerns as the move might trigger additional selling.

MasterCard, Inc. (MA) is a global payment solutions company that provides a variety of services in support of the credit, debit and related payment programs of financial institutions. The Company offers transaction processing services for credit and debit cards, electronic cash, automated teller machines, and travelers checks.

Mastercard's stock was trading in a well defined range with support at $433.84 and resistance at $466.98; given that this range was broken, traders will be closely monitoring the stock's price action for clues of direction.

From a technical perspective, it can be expected that previous support becomes resistance, as the new range gets defined. However, $433.84 will remain in focus as Mastercard's price action places the stock near the broken support. Traders will be waiting to see if it can bounce back and return to its previous range.

Traders wanting to establish a short position in Mastercard can do so if the stock breaks the intraday low, or if the stock bounces back and selling materializes again at previous support of $433.84. However, if traders want to build a long position, the best entry point to do so is when the price action takes the stock back to calculated support.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.