Details: Looking for a wave {ii} as we seem to have what appears to be a triangle in wave (b), therefore a three wave move that fits the wave {ii} narrative.

This analysis of MercadoLibre Inc., (MELI) focuses on both the daily and 1-hour charts, using the Elliott Wave Theory to assess current market trends and forecast future price movements.

MELI Elliott Wave technical analysis – Daily chart

The daily chart analysis indicates that MELI is currently in wave 3 of (5), showing strong momentum. This wave is expected to continue moving higher, with targets possibly reaching $3000 based on the length of previous movements. The outlook remains bullish, and traders should watch for signs of further upside.

MELI Elliott Wave technical analysis – One-hour chart

On the 1-hour chart, MELI appears to be in the corrective phase of wave {ii} of the ongoing advance. The formation of what looks like a triangle in wave (b) supports the narrative of a three-wave corrective structure. The expectation is for this correction to complete, setting up for a continuation higher in wave {iii}.

Technical analyst: Alessio Barretta.

MELI Elliott Wave technical analysis [Video]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD extends slide below 1.1700

The EUR/USD pair nears its weekly low at around 1.1660 in the American session on Tuesday, retreating from the 1.1750 price zone tested earlier in the day. Cautiously optimistic markets support the US Dollar in the near term.

GBP/USD retreats from three-month-high, pierces 1.3500

GBP/USD extends its intraday slide and trades in the red just below 1.3500 after setting a new three-month-high near 1.3570. Ahead of this week's key employment data releases from the US, markets recover the good mood.

Gold extends upside to near $4,500 on Venezuela turmoil

Gold price climbs to near $4,500 during the early Asian trading hours on Wednesday. The precious metal rises by more than 1% in the day as geopolitical tensions and expectations of US rate cuts keep demand for gold high. The US ISM Services Purchasing Managers Index report will be published on Wednesday.

Australia CPI likely to test RBA hawkishness

The Australian Bureau of Statistics will publish the Consumer Price Index data for November at 00:30 GMT on Wednesday. This is the second complete monthly CPI report, as the government continues to transition from the quarterly CPI to the monthly gauge as the primary measure of headline inflation.

Implications of US intervention in Venezuela

Events in Venezuela are top of mind for market participants, and while developments are associated with an elevated degree of uncertainty, we are not making any changes to our markets or economic forecasts as a result of the deposition of Nicolás Maduro.

Cardano holds steady as bulls intensify push for breakout

Cardano rises above the 50-day EMA resistance amid a risk-on mood across the crypto market. The MACD upholds positive divergence, increasing the potential for a 20% breakout to $0.505.