MasterCard is the second-largest payments processor in the world. Its primary business is to process payments between banks and credit card-issuing institutions. The credit card market is an oligopoly, with MasterCard and Visa dominating the industry. MasterCard benefits from network effects as more customers make the company’s platform more attractive to institutions, and more institutions on the platform make it easier for customers to use MasterCard products. The long-term growth prospects of MasterCard are bright.
The long-term monthly chart for MasterCard shows a clear uptrend for over ten years. Since 2018, the price appears to have respected the long-term trend lines. In fact, the price only briefly went below the trend line even during the March 2020 crash. However, the price recovered swiftly and touched an all-time high of close to $400 before pulling back. The $315 level is an important one because it acted as a resistance zone in early 2020 and now appears to be providing support. A reversal from here makes a long position attractive with a target of $400 and a tight stop loss below the bottom trend line around $295.

Position entered into our long-term tracking portfolio today. The entry point is at $344.17, and stop-loss is $274.47, which is 20% below the entry point. The short-term to medium-term take profit at the top of the trend is set at $392.70, giving a profit of 14%.