Trader Robot's Skillful Trading Nets MELI +3.15% Profit Last Week
One such AI-powered trading robot, accessible at Day Trader, Popular Stocks: Short Bias Strategy (TA&FA) recently showcased its capabilities by generating an impressive +3.15% gain while trading MELI over the previous week. This article aims to analyze the earning results of MELI, along with the potential outlook for the stock and how traders may capitalize on this promising trend.
Earnings Report Overview:
Before delving into MELI's potential future price action, let's first take a closer look at the last earnings report. On May 03, the company reported earnings per share (EPS) of $3.97, surpassing the estimate of $2.81. This positive earnings surprise indicates that MELI has been performing well, potentially bolstering investor confidence in the company's prospects.
Market Capitalization and Shares Outstanding:
With 463.26K shares outstanding, MELI's current market capitalization stands at an impressive $57.02 billion. A substantial market capitalization implies that the company is well-established and enjoys a significant market presence. This large market cap is a positive signal for traders and investors alike, as it indicates stability and attractiveness to institutional investors.
Bollinger Band Analysis:
Technical analysts often use Bollinger Bands to gauge a stock's volatility and potential price movements. Currently, MELI seems to be trading near its lower Bollinger Band, suggesting a potential undervalued state. In such situations, traders often anticipate a price reversal, with the stock moving back toward the middle band.
Historical Bollinger Band Breakouts:
Analyzing MELI's historical data, it is noteworthy that in 26 out of 30 instances where the stock price broke below its lower Bollinger Band, the price subsequently rose further in the following month. This pattern provides valuable insight into the stock's historical price behavior, indicating a strong tendency for MELI to recover after touching its lower Bollinger Band.
Odds of a Continued Upward Trend:
Based on historical data, there is an 87% likelihood of MELI continuing its upward trend following a breach of the lower Bollinger Band. This statistically significant probability suggests that the current situation might present an attractive opportunity for traders looking to capitalize on potential price gains.
Summary:
In conclusion, MELI's recent earnings report has outperformed expectations, indicating the company's strong financial standing and growth potential. Coupled with the AI trading robot's impressive +3.15% gain while trading MELI over the previous week, there is substantial evidence to support a bullish outlook for the stock. Traders may consider buying the stock or exploring call options, especially given the historical trend of MELI's price rising further after touching its lower Bollinger Band.
MELI in downward trend: price dove below 50-day moving average on September 22, 2023
MELI moved below its 50-day moving average on September 22, 2023 date and that indicates a change from an upward trend to a downward trend. In of 29 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for MELI moved out of overbought territory on September 08, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator moved out of overbought territory. In of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on September 18, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on MELI as a result. In of 96 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for MELI turned negative on September 18, 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 .
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
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 .
MELI may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 301 cases where MELI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend 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 92, 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 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 (28.736) is normal, around the industry mean (17.230). P/E Ratio (86.207) is within average values for comparable stocks, (72.975). Projected Growth (PEG Ratio) (1.066) is also within normal values, averaging (2.313). Dividend Yield (0.000) settles around the average of (0.039) among similar stocks. P/S Ratio (5.498) is also within normal values, averaging (9.408).
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.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a providesr of internet trading services
Industry InternetRetail
MELI and
Correlation & Price change
A.I.dvisor indicates that over the last year, MELI has been loosely correlated with CVNA. These tickers have moved in lockstep 52% of the time. This A.I.-generated data suggests there is some statistical probability that if MELI jumps, then CVNA could also see price increases.
| Ticker / NAME | Correlation To MELI | 1D Price Change % | ||
|---|---|---|---|---|
| MELI | 100% | -1.70% | ||
| CVNA - MELI | 52% Loosely correlated | -1.79% | ||
| JMIA - MELI | 49% Loosely correlated | -0.41% | ||
| AMZN - MELI | 49% Loosely correlated | -4.03% | ||
| GLBE - MELI | 47% Loosely correlated | -3.61% | ||
| CPNG - MELI | 46% Loosely correlated | -2.14% | ||
More | ||||