its MercadoLibre Inc ( Meli) – Technical Levels We’re Looking At
Chart source: Poemsview 3rd March 2021
MercadoLibre is the leading e-commerce technology and dominant retailer in Latin America. It holds a lead in its core market and the Company’s website allows businesses and individuals to list items and conduct sales and purchases online in either a fixed-price or auction format. MercadoLibre offers classified advertisements for motor vehicles, vessels, aircraft, real estate and services, and offers online payment services.
What surprising about (Meli)? Well, it isn’t e-commerce that gets most in-the-know investors excited about MercadoLibre’s future. but rather its MercadoPago payment platform. Initially, the host of digital payments solutions was initially designed to support transactions on the MercadoLibre site, but it has since expanded to an off-platform payment platform and even into an asset management provider.
In the same quarter, MercadoPago saw its number of unique payers reach 60 million, with more than half using it for off-platform uses like buying goods at a local grocery store or gas station. Total payment volume (currency-neutral) exploded by 161% over the prior year’s quarter, with volume for off-platform leading the way with 197% growth.
Financial Results for Quarter ended December 31,2020
Some highlights :
- Unique active users grew by 71.3% year-over-year, reaching 74.0 million.
- Gross merchandise volume (“GMV”) grew to $6.6 billion, representing an increase of 69.6% in USD and 109.7% on an FX neutral basis.
- Items sold reached 229.4 million, increasing by 109.5% year-over-year.
- Online Payments TPV grew 142.9% year-over-year on an FX neutral basis and continued expanding its merchant base. The sequential deceleration was mostly explained by a higher impact on long tail sellers amidst the easing of COVID-19 restrictions.
- Mobile Wallet delivered $3.3 billion in Total Payment Volume on a consolidated basis, leading to a 246.9% year-over-year growth on an FX neutral basis.
More can be read HERE!
Our Take
Meli has retraced close to 20% since the high of $2020 and is sitting around its 100ema of around $1600. For longer term investors, this level is one level to consider scaling in as it has reached a good support. $1600-1650 for a starter size might be a good start.
The next two level of support to consider scaling in might be around $1520 and the 150ema of around $1470. Get into your investment in phases and not all in at one time as nobody knows the bottom. MercadoLibre is a great company to diversify your portfolio and with the recent pullback a good opportunity might arise. The resistance is at the downtrend resistance which we have drawn. A break and stay above that might signal more upside and an end to the correction.
Yours
Humbly
Kelwin&Roy
