Will MercadoLibre (MELI) Skyrocket To Its Previous All-Time High With This Rounding Bottom Pattern?

MercadoLibre, Inc (MELI) is the top e-commerce platform in Latin America, providing six integrated services to businesses and individuals. The Marketplace allows for online sales and merchandise listings, while Classifieds offers online classified listings for vehicles, real estate, and services. The MercadoPago FinTech platform facilitates seamless payments within the marketplace, as well as via websites and mobile apps. Advertising services and MercadoShops help sellers promote and manage their online stores. The Argentine company operates across 15 countries in the region, including Brazil, Mexico, and Uruguay. MELI is listed on NASDAQ and is a component of Nasdaq 100.

Wyckoff Distribution Evolved To Wyckoff Accumulation

Since September 2021, MELI has been in a vulnerable position as the Wyckoff distribution pattern for S&P 500 was unfolding as discussed in this article. There was a rally to around $1276 on 4 Apr 2022 but the price retraced with Wyckoff sign of weakness (SOW). It continued all the way to $640 until 12 May where a Wyckoff selling climax (SC) formed. This was accompanied by an increase in volume suggesting the presence of supply.