| Mastercard Maxed Out in Upper Keltner Channel  Dear Chart Of The Day Reader,
Yesterday, we looked at a monthly chart of Advanced Micro Devices, Inc. noting the stock has been on a bullish run since May 2018. Today's Chart of the Day is a Keltner Channel Chart for Mastercard Inc. (NYSE: MA). Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. Now, the Keltner Channels serve as an overbought/oversold indicator. When the daily stock price is trading above the Upper Channel, it signals that the stock is overbought. Stocks in a price uptrend do not advance in a straight line. There are always price retracements along the way. When a stock becomes overbought, it normally declines in price as the inevitable profit taking occurs. Below is a Daily Price Chart for Mastercard Inc. along with the three Keltner Channels (Upper, Middle, and Lower). 
The MA daily price chart shows that MA is in a strong price uptrend and recently became overbought many times as the stock traded above the Upper Keltner Channel (circled in blue). As you can see, after trading above the Upper Channel in all scenarios, MA experienced a pullback. Yet, even though MA experienced the pullbacks, in all cases the stock always continued to rally afterwards. If you want to participate in this rally, where is the best place to enter? We use the Keltner Channels to help us select a lower-risk entry point. A Keltner Channel "Buy Zone" occurs when a stock is trading below the Upper Keltner Channel. Once the daily price is trading below the Upper Channel, it signals a buying opportunity. If you had purchased MA shares when MA entered the "Buy Zone" around September 11th, you'd be up 18.99% on the stock by now! Knowing that MA shares are continuing to rise, experience pullbacks, and rally again, we'll be paying attention to future pullbacks in order to get in at the lowest entry point. Maximizing Our Profit Potential Additionally, we'd like to talk about how a previous Chart of the Day stock has done… On January 22nd, we highlighted American Elec Pwr Co., Inc. (NYSE: AEP), noting that AEP had been making a series of 52-Week Highs since late December. If you happened to have purchased AEP shares on that day, you'd already be up 2.86%. But… if you had purchased the right option contract, you would be up 118.18% in just over a week's time! That's the power of options. I developed my premium research trading and training service, PowerTrend Options, for the express purpose of finding these life-changing chances. Not by trading with my gut, but by trading by the numbers — pure technical analysis. My PowerTrend "X-Ray" system has seen me through more than 30 years of successful trading and competing. It built the life my family gets to live now. In fact, that's the whole thesis of that options research service — the right trade has the power to set you on the path to living the life of your dreams. But we know that some people like to walk before they run… and so we designed a class just for them, called the Thunderbird Options Course. Complete with syllabus, videos, and quizzes. Check out the details here if you haven't yet! Best Regards, 
Chuck Hughes
Editor, Chart Of The Day | 
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