Mastercard Incorporated (MA) shares fell about 0.3% on Tuesday after the company reported strong third quarter financial results. Revenue soared 18.1% to $3.4 billion – beating consensus estimates by $120 million – while earnings per share of $1.34 beat consensus estimates by 11 cents per share. Gross dollar volume also grew 10%, while purchase volume and cross-border volume both jumped by 11% during the third quarter.

The stock initially rallied following its earnings announcement, but shares moved lower after the company disclosed that it expects fines from the European Commission (EC). According to a regulatory filing, the EC could fine the company upwards of $1 billion if the agency makes an adverse decision about antitrust violations. Management expects to have more clarity on the issue next quarter, but the warning drew concern among investors.

Technical chart showing the performance of Mastercard Incorporated (MA) stock

From a technical standpoint, the stock has stalled over the past couple of trading periods after reaching all-time highs late last month. The relative strength index (RSI) has moved into overbought territory with a reading of 76.6, while the moving average convergence divergence (MACD) has been trending lower since mid-September. However, the MACD could be on the verge of experiencing a bullish crossover if the stock rebounds higher.

Traders should watch for some consolidation between trendline and R1 resistance at $153.48 and the pivot point at $147.29 until the RSI reaches more moderate levels. A breakout from trendline and R1 resistance could send shares to R2 resistance at $158.19, while a breakdown from the pivot point could lead to a test of trendline support at $145.00. Traders should maintain a cautiously bullish long-term bias, but the stock could see some short-term consolidation. (See also: MasterCard's Stock Can Continue to Rise for Years.)

Chart courtesy of The author holds no position in the stock(s) mentioned except through passively managed index funds.

Want to learn how to invest?

Get a free 10 week email series that will teach you how to start investing.

Delivered twice a week, straight to your inbox.