MarketAxess Holdings is a financial technology company that operates a platform used for trading corporate bonds and fixed-income instruments. The trading is done by over 1500 institutional customers and broker-dealers. Therefore, MarketAxess benefits from network effects as more users improve price discovery and also brings in economies of scale. The company has the largest market share and is the most dominant player in the fixed-income segment. Its longer-term growth prospects are bright.
The long-term monthly chart for MarketAxess Holdings shows a decade-long uptrend with a few pullbacks. During every pullback, however, the price has respected the bottom of the long-term trend. The most recent pullback occurred over the first half of 2021 as prices fell 30% from a peak of $600 to around $423. The $423 level is an important one because it acted as a resistance level in 2019 and then turned into support in 2020 and 2021. The most recent price reversal also occurred at the confluence of the $423 level and the bottom of the long-term trend. The target price is now $585 – $600, with a stop-loss set below the support zone at $410.

Position entered into our long-term tracking portfolio today. The entry point is at $485.38, and stop-loss is $409.68, which is 16% below the entry point. The short-term to medium-term take profit at the top of the trend is set at $547.42, giving a profit of 13%.