Why Brokerage Houses Are Bullish Over MELI?

MercadoLibre, Inc. (MELI stock) price has been bullish on the charts after a golden crossover in January 2023. The price has been steadily inclining taking support from the 200 EMA. The stock price has shown a significant gain of 65% year-to-date.

The daily chart shows that the price is forming a parallel channel pattern and currently rising toward the upper edge of the pattern. The price has closed at $1436.35 with a gain of 0.78% on Thursday’s session. The stock has also shown a significant gain of more than 7% in the past week.

The price is heading to hit a round number of $1500 mark. However, the price is still down by 27% from its all-time high indicating that the stock has the potential to move forward and might gain more in the coming sessions.

The analysts are bullish about MELI future prices as the stock has an average rating for outperforming and price targets from $1200 to $2180 according to the analysts polled by Capital IQ. Furthermore, UBS maintains a buy rating adjusting the MELI stock price targets from $1600 to $1700. The company engages in the development of an e-commerce platform and generating leads-related services.

MELI Stock Forecast: Why Brokerage Houses Are Bullish Over MELI? — Source: barchart.com

MELI stock option-chain analysis states that the current implied volatility in the market is 35.44% with a decrement of 0.81% in the last trading session. The at-the-money strike has an OI of 23 on the PUT side and 51 on the CALL side indicating that the sellers are dominating at the CMP.

MELI Stock Price Gains To Reach $1500 Mark

The MELI stock price currently trades at $1436.35 and is headed upwards which is supported by the volume making the gains sustainable. Analysts are bullish on the price trend until it remains above the 50 EMA and the price seems to be in a clear traffic zone with no major resistance nearby. The price may continue with the ongoing momentum to surge and conquer $1500 soon.

The EMAs Shows A Strong Uptrend Prevailing In The Stock

The daily MELI stock price chart shows that the price took a rebound from 50 EMA to break above the last selling zone indicating a clear domination of buyers in the market at the moment.

The overall Technical Opinion rating including RSI and MACD is signaling an 88% buy with a strengthening short-term outlook on maintaining the current direction.

Conclusion

MercadoLibre, Inc. (MELI stock) is an e-commerce platform that has gained 65% year-to-date and 7% in the last week. The price is in a parallel channel pattern and rising toward $1500, which is 27% below its all-time high. The analysts have a positive outlook and price targets ranging from $1200 to $2180. UBS has a buy rating and a price target of $1700. The price is supported by the volume and has no major resistance nearby. The price may keep the momentum and reach $1500 soon.

Technical Levels

Support levels: $1325.55 and $1198.88.
Resistance levels: $1500.15 and $1606.65.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.