Current trend

Shares of MasterCard Inc., one of the largest American multinational companies providing payment services, are moving in an upward trend at 494.00.

This week, it became known about the conclusion of an agreement to purchase Recorded Future Inc., a cybersecurity company, for 2.65B dollars. Its current owner is Insight Venture Management, LLC, and the deal may be agreed upon before the end of the year. Against this background, KeyBank analysts maintained the rating of the issuer’s shares at the overweight level, with the target price of 515.0 dollars per share. According to experts, after the acquisition, the Recorded Future Inc. team will be preserved and continue its activities.

The payment operator’s financial report is due on October 24: according to preliminary estimates, revenue increased from 7.00B dollars to 7.26B dollars, up from 6.50B dollars a year earlier, and earnings per share from 3.59 dollars to 3.73 dollars compared to 3.39 dollars. The board of directors approved a new dividend of 0.66 per share dollars, which will amount to 2.64 dollars YoY. The payment is due on November 8, and the record date is October 8. The quarterly dividend yield is 0.53%, not enough for high investment demand.

Support and resistance

On the daily chart, the trading instrument is moving above the resistance line of the sideways channel 490.00–420.00. Technical indicators are preparing to strengthen the buy signal: fast EMAs on the Alligator indicator are significantly above the signal line, and the AO histogram is forming correction bars, rising in the buy zone.

Resistance levels: 500.00, 521.00.

Support levels: 489.00, 469.00.

Trading tips

Long positions may be opened after the price rises and consolidates above 500.00, with the target at 521.00. Stop loss is 490.00. Implementation period: 7 days or more.

Short positions may be opened after the price falls and consolidates below 489.00, with the target at 469.00 and stop loss 500.00.