MercadoLibre is actionable after crossing a downward-sloping trendline on Feb. 24. It retraced to the top of a consolidation pattern. It is nearing 1,250.58, an alternate handle entrance point.
With a good earnings report, MELI remained bullish Friday despite overall bearish movement. The stock’s high-volume breakout seemed encouraging. It also consolidated early.
MELI has an Accumulation/Distribution Rating, indicating fund buying. A 1.3 up/down volume ratio suggests up days have 30% more volume than down days during the past 50 trading sessions.
The largest Latin American e-commerce company, MercadoLibre, competes with Amazon (AMZN). Its 99 IBD Composite Rating reflects its strong performance. The corporation posted a $3.20 Q4 profit, reversing a year-ago loss. $3 billion revenue rose 41%. 2022 EPS rose 473%. Experts expect 2023 EPS to rise 57%.
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Buenos Aires-based MercadoLibre is Central and South America’s largest e-commerce operator. It dominates Amazon in its own backyard. Online payments and commerce are offered in Argentina, Brazil, Mexico, Colombia, and other Latin American countries.
With 127 million active users, MercadoLibre hosts platforms for online business creation and an e-commerce marketplace. Mercado Pago, its financial company, lets users make contactless payments, pay utility bills, peer-to-peer transactions, and buy transportation tickets. Users exceed 40 million.
MELI leads IBD’s Retail-Internet industry group. Pinduoduo (PDD) and Etsy are also rising (ETSY).