Banco Macro Stock Under Pressure As Outlook Dims

Banco Macro (NYSE:BMA) stock currently sits in Phase 8 of its 18-phase Adhishthana cycle on the weekly chart, and its outlook isn't looking promising. Here's a breakdown under the lens of the Adhishthana Principles.

Banco Macro's Adhishthana Cycle So Far

According to the Adhishthana Principles, stocks typically form a Cakra structure between Phases 4-8. This channel-like pattern, shaped with an arc, usually carries bullish implications. A clean breakout in Phase 9 often sparks the Himalayan Formation, a strong bullish move.

Banco Macro entered its Phase 4 back in September 2022, building its Cakra through Phase 6. But as the stock transitioned into Phase 7, the picture changed dramatically.

In Phase 7, stocks often undergo two sub-moves of decline, referred to as the fall of Artha and Artharthi. Banco Macro broke its structure here, slipping below its Cakra and triggering the Move of Pralaya.

This setup closely resembles what we highlighted yesterday in FIS stock, although in FIS's case the breakdown came in Phase 9 rather than Phase 7.

As outlined in Adhishthana: The Principles That Govern Wealth, Time & Tragedy:

"When the underlying breaks the Cakra on the flip side, consolidation typically extends into the Guna Triads. The move that follows is highly significant, and selling pressure can be extremely strong. This is called the Move of Pralaya."

True to the Principles, Banco Macro collapsed from around ~$80 to ~$40, dropping by more than 50%.

Investor Outlook

With the Cakra breakdown already confirmed, Banco Macro's outlook leans bearish. What's more concerning is that a similar structure is visible both on its ADR and on its home-country listing, signaling that this weakness is systemic.

The Guna Triads won't begin until 2029, meaning this underperformance could drag on for years. Despite buy ratings from institutions like HSBC, we see little reason to treat the stock as a value play. While short-term rallies may occur, they're unlikely to sustain long-term.

A breakdown on the flip side usually signals deeper, inherent risks within a company, risks that often surface only much later. We advise caution. Even in the options market, open interest is skewed toward deep out-of-the-money calls.

Bottom line: With the Cakra broken on the flip side and the Move of Pralaya in play, Banco Macro isn't a buy for now.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.