As per WSFS Financial's 15-minute chart, a MACD Death Cross and KDJ Death Cross have been triggered, accompanied by a Bearish Marubozu at 08/20/2025 12:00. This signals a potential continuation of the downward trend in the stock price, with a shift in momentum towards the downside and a likelihood of further decreases. Sellers are currently in control of the market, and it appears that bearish momentum is likely to persist.
MercadoLibre's (MELI) 15-minute chart has triggered a KDJ Death Cross and a Bearish Marubozu at 12:00 on August 20, 2025. This signals a significant shift in momentum towards the downside, suggesting a potential decrease in the stock price. Sellers currently dominate the market, and it is likely that this bearish momentum will persist.
The KDJ (Keltner Channels) Death Cross occurs when the KDJ line crosses below the signal line, indicating a change in momentum from bullish to bearish. The appearance of a Bearish Marubozu candlestick pattern further supports this bearish sentiment. A Marubozu candlestick is characterized by a long body without any upper or lower wicks, suggesting strong buying or selling pressure with no reversal.
Analysts have provided a mixed outlook for MercadoLibre. According to MarketBeat, out of 17 analysts, 2 have given a hold rating, 14 have given a buy rating, and 1 has given a strong buy rating for MELI. The average price target is $2,795.00, representing a forecasted upside of 21.94% from the current price of $2,292.13 [2].
Despite the positive analyst ratings, investors should be cautious. MercadoLibre reported strong revenue growth in the second quarter of 2025 but experienced a slight decrease in net income. The company's expansion in commerce and fintech, along with higher marketing spend and adjustments to its free shipping policy in Brazil, has impacted short-term profitability. The narrative projects $45.5 billion in revenue and $5.3 billion in earnings by 2028, requiring 23.6% yearly revenue growth and a $3.2 billion increase in earnings from $2.1 billion today [1].
Investors should be mindful of rising fulfillment and shipping costs, which could impact margins if scale benefits don't materialize as expected. MercadoLibre's commitment to increasing investment in Brazil supports higher revenue and user engagement but must be balanced with cost management.
Fair value estimates for MercadoLibre from the Simply Wall St Community span from $1,398 to $3,406 across 29 individual forecasts, highlighting diverse views on growth versus profitability. While the stock might be worth as much as 45% more than the current price, investors should consider the potential risks associated with margin pressure and cost management [1].
References:
[1] https://simplywall.st/stocks/us/retail/nasdaq-meli/mercadolibre/news/how-investors-are-reacting-to-mercadolibre-meli-balancing-ra
[2] https://www.marketbeat.com/stocks/NASDAQ/MELI/forecast/
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