Warnings of More Losses for Mastercard Shares, but Ray of Hope for Bulls

Mastercard shares have come under increasing technical pressure after retreating from a record closing high reached in August, with chart signals suggesting the stock could face further losses.

The payments company’s shares closed at a record $599.86 on August 24, according to LSEG data. After briefly attempting to extend those gains, the stock began declining into early September and continued to move lower. Mastercard reached an intraday low of $546.12 on Thursday, its weakest level since July 27.

Several technical indicators are now pointing to continued weakness. Mastercard’s Bollinger Bands, which are used to measure price volatility around a moving average, are trending lower. The move can indicate that the stock remains under selling pressure.

The Moving Average Convergence Divergence, or MACD, is also pointing downward, adding another negative signal to the chart. Meanwhile, the Relative Strength Index has continued to confirm the stock’s declining price trend rather than showing that Mastercard has reached technically oversold conditions.

Another concern comes from a potential head-and-shoulders formation developing on Mastercard’s chart. Technical analysts often interpret this pattern as a signal that an existing upward trend could reverse. Based on the size of the formation, the resulting measured move could put the shares in the $500 to $505 area.

There are several potential stopping points before that level, including around $540 and $515. These areas could become important if Mastercard continues to decline.

However, the chart also contains a possible sign of stabilization. Mastercard formed what technical analysts call a doji on Thursday, meaning the closing price finished close to the opening price despite movement during the trading session. After a decline, such a pattern can signal uncertainty among buyers and sellers and may indicate that selling pressure is temporarily losing momentum.

A move back above Thursday’s high of $557.20 would provide an initial technical signal of improvement. A stronger move above the $571 to $572 area would weaken the bearish setup and change the recent technical picture.

Mastercard did not immediately respond to Reuters’ request for comment. Reuters noted that its technical analysis is based on chart patterns and does not guarantee future price movements or constitute investment advice.