MELI Trade Propels Robot Factory to 4.95% Gain
Swing Trader's AI trading robot has been making waves in the stock market lately, particularly in the realm of medium volatility stocks. In fact, the robot was a top performer in Tickeron's robot factory over a week, generating a notable 4.95% for MELI. This impressive performance is due in large part to the use of technical and fundamental analysis by the robot.
One of the key technical indicators that the AI trading robot utilizes is the Aroon Indicator, which recently triggered a bullish signal for MELI. Specifically, on April 27, 2023, Tickeron's A.I.dvisor detected that the AroonUp green line was above 70, while the AroonDown red line was below 30. This pattern typically signals that a stock could be poised for a bullish move.
Traders who followed the A.I.dvisor's recommendation may have bought the stock or looked to buy call options. To support this strategy, A.I.dvisor examined 293 similar instances where the Aroon Indicator showed a similar pattern. The results were impressive, with the stock moving higher in 257 of the 293 cases. This puts the odds of a move higher at a promising 88%.
The most recent earnings report for MELI, released on May 03, showed strong results, with earnings per share of $3.97 beating the estimate of $2.81. This is a positive development for the company and its shareholders. With 274.29K shares outstanding, the current market capitalization sits at $65.10B.
Swing Trader's AI trading robot has been a top performer in Tickeron's robot factory, generating impressive returns for medium volatility stocks such as MELI. By utilizing technical and fundamental analysis, the robot has been able to identify promising trading opportunities, such as the recent bullish signal triggered by MELI's Aroon Indicator. With strong earnings results beating estimates, it appears that the company is on a positive trajectory.
Aroon Indicator for MELI shows an upward move is likely
MELI's Aroon Indicator triggered a bullish signal on April 27, 2023. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 293 similar instances where the Aroon Indicator showed a similar pattern. In of the 293 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The Momentum Indicator moved above the 0 level on May 26, 2023. You may want to consider a long position or call options on MELI as a result. In of 98 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
MELI moved above its 50-day moving average on May 26, 2023 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MELI advanced for three days, in of 360 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for MELI turned negative on May 25, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MELI declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 95, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. MELI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (31.546) is normal, around the industry mean (18.928). P/E Ratio (105.263) is within average values for comparable stocks, (73.881). Projected Growth (PEG Ratio) (1.898) is also within normal values, averaging (2.626). Dividend Yield (0.000) settles around the average of (0.038) among similar stocks. P/S Ratio (5.834) is also within normal values, averaging (8.439).
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