MercadoLibre shares dip amid rising selling pressure

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MercadoLibre slides 2.16% today

Highlights

MercadoLibre posted quarterly earnings of $8.23 per share, missing estimates despite a 49% revenue surge to $8.85 billion.
Institutional ownership remains strong at 87.62%, with notable new positions established even amid persistent selling pressure.
The stock trades below several key moving averages with bearish momentum signals, targeting a $1,610.10–$1,635.65 range and low likelihood of rebound.

Earnings miss and institutional inflows as selling persists

MercadoLibre reported quarterly earnings of $8.23 per share, which fell short of analysts' expectations, accompanied by quarterly revenue of $8.85 billion, reflecting a 49% increase from the previous year. Life Cycle Investment Partners Ltd disclosed the purchase of a new position in MercadoLibre during the fourth quarter, acquiring 3,313 shares valued at approximately $6.67 million. Institutional investors and hedge funds collectively owned about 87.62% of the company as of the latest filings, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees MercadoLibre facing prolonged bearish pressure. The stock trades below all significant moving averages and recent earnings failed to impress, despite institutional inflows. Weak momentum and lack of clear trend suggest downside risks remain dominant. Broad selling pressure outweighs signs of intraday buyer strength. "Until technical and sentiment signals improve, I consider MercadoLibre a defensive hold at best."

Viktoras Karapetjanc, expert at Traders Union, highlights resilient revenue growth and strong institutional ownership as supportive fundamentals. He believes recent buying by Life Cycle Investment Partners signals continued investor confidence. Momentum may lag, but the underlying business expands robustly and offers longer-term upside opportunities. "With revenue up 49% year-over-year, I see the market structure as bullish and expect renewed momentum once sentiment shifts."

Jainam Mehta, market strategist, notes that MercadoLibre is caught in a corrective phase with mixed short-term momentum signals. He sees price consolidating within the $1,610.10 to $1,635.65 band and recommends waiting for a clear breakout. Mehta thinks tactical short trades may work if $1,610.10 fails, given persistent downside gaps. "Traders should watch for a potential move out of this range — a sustained break could offer a contrarian entry on either side."

Momentum weakness and technical boundaries contain downside move

MercadoLibre is trading well below its 20-day ($1,702.10), 50-day ($1,726.88), and 200-day ($2,039.40) simple moving averages, confirming short-, medium-, and long-term bearish pressure. The nearest dynamic resistance is the Ichimoku Kijun at $1,699.00. Momentum signals remain weak, with the MACD showing a strong sell and the ADX reading of 15.51 indicating a lack of clear trend. The RSI forecasts a continuation of bearish momentum at 46.54, while the Stochastic RSI and CCI are neutral, reflecting some indecision. Bull/Bear Power at 44.58 suggests buyers dominate intraday momentum, but the overbought signal warns of possible exhaustion. The Awesome Oscillator is neutral, providing no additional confirmation. MercadoLibre is down 2.16% on the day at $1,628.50, posting a downside gap of around $6.43 and holding near the lower end of the daily range. Intraday volatility stands at 2.56%. The tone remains negative with persistent pressure after the open, and short-term oscillators reflect divergence from strong downward momentum signals.

Earlier, analysts noted that MercadoLibre faced persistent bearish momentum despite its strong business growth, with technical indicators pointing to continued caution among investors. The current data reinforces this cautious stance, suggesting traders should monitor the $1,610.10 downside level as a potential trigger for increased selling pressure in the week ahead.

Source of Data: MELI Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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