Mastercard shares face further downside as technical signals stay bearish

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Mastercard bearish technical signals

Highlights

Mastercard shares hit an intraday low of $546.12 on Thursday, their weakest since July 27, after peaking at a record $599.86 on Aug. 24.
Technical indicators including downward-trending Bollinger Bands, MACD, and RSI confirm momentum remains bearish and the stock is not yet oversold.
A bearish head-and-shoulders pattern suggests further downside toward the $500–$505 range, with possible support near $540 and $515.

Technical indicators point to more losses

As reported by Reuters, Mastercard closed at a record $599.86 on Aug. 24, based on LSEG data, before the rally faded and the shares turned lower into early September. The stock has since moved down in a zigzag pattern, reaching an intraday low of $546.12 on Thursday, its weakest level since July 27.

Several technical gauges suggest the decline may not be over. Bollinger Bands are trending lower, indicating continued weakness, while the Moving Average Convergence Divergence indicator also points downward. The Relative Strength Index is signaling that the shares are not yet oversold, suggesting the current slide can continue without a pause.

Analysts also watch whether RSI confirms fresh price lows, and in Mastercard's case it has done so repeatedly, including on Thursday. That alignment between price action and momentum is typically read as support for the prevailing downtrend.

Key price levels offer bulls a possible opening

A bearish head-and-shoulders formation also appears to be developing on the chart, a pattern that technical analysts often associate with a further loss of momentum. Based on the measured move implied by that setup, Mastercard could fall toward the $500 to $505 area, with intermediate support zones around $540 and $515.

At the same time, a doji pattern formed late on Thursday, signaling potential indecision after the recent selloff. If the shares rally on Friday above Thursday's high of $557.20, that could improve the near-term outlook for buyers, while a move above the $571 to $572 range would undermine the broader bearish view.

Mastercard does not immediately respond to an email seeking comment.

Our earlier coverage of rising government bond yields looked at how a sharp global sell-off pushed U.S. and European borrowing costs to multi-decade highs and increased concerns about tighter financial conditions. We noted that expectations for higher terminal rates, along with stubborn inflation risks and elevated energy prices, were keeping pressure on fixed income and raising the risk of knock-on volatility for equities.

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