Mastercard (MA.us) announced an increase in its dividend and another share buyback program. MA.us will raise its quarterly dividend to 66c (57c), which is a 15.8% increase. It will also repurchase $11bn of its own stock once its current $9bn plan is completed – there is $3.5bn still outstanding.
Mastercard has had a good 2023. It is up 16.78% for the year-to-date. Its green 5-week EMA has crossed above its orange 10-week EMA (red ellipse). This puts the EMAs into a bullish formation. The MA.us weekly RSI has pushed above 50 (blue rectangle). This is the bullish side of the indicator. The longer it maintains above 50, the greater the momentum support for the stock price.
There is overhead resistance around the $418 level (red shaded horizontal). This may prove to be a headwind for the stock. However, there has been strong accumulation of Mastercard lately and, if the RSI remains above 50, it should breakout above resistance.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.