VISA is another stock that I have been keeping an eye on recently as it shares a similar story tto i Master Card (www.tradingview.com/...nife-or-Buy-the-Dip/)
Analyst ratings on the stock remain overwhelmingly positive with a consensus target around $241 despite mediocre earnings results that resulted in some selling pressure and increased volatility lately.
On the technical side the stock seems somewhat undecided however;
Positive Factors
Negative Factors
My trade;
I went long in yesterdays trading at $200
Stop Loss outside recent lows around $191 (Oct/Nov gap levels) to account for incr. vol.
Take profit set at $230 although I'd eye the recent $220 highs as a first target
Analyst ratings on the stock remain overwhelmingly positive with a consensus target around $241 despite mediocre earnings results that resulted in some selling pressure and increased volatility lately.
On the technical side the stock seems somewhat undecided however;
Positive Factors
- Stock recovered above 200 EMA which reinstated it as support level
- Back at the 0.786 Fibonacci levels which for now is a (soft) support
- Dynamic resistance level has been broken and indicates more bullishness
- Back at the gap base created on November 2020 earnings
- RSI bounced off oversold territory back to neutral (50's)
Negative Factors
- MACD still indicates bearish sentiment
- 100 EMA could proof resistance
- No confirmed long-term trend. The stock is moving pretty much sideways since mid 2020
- Rather large intraday swings, which makes SL setting more difficult
My trade;
I went long in yesterdays trading at $200
Stop Loss outside recent lows around $191 (Oct/Nov gap levels) to account for incr. vol.
Take profit set at $230 although I'd eye the recent $220 highs as a first target
Comment:
Maintaining position post drop on March 19 as long as the pre-breakout lows ($203) is not broken.
Will work with a dynamic SL at 10% OTM from here.
Will work with a dynamic SL at 10% OTM from here.
Post earnings and Dividend payout I updated my chart;
My findings;
- Multiple failed attempts to break the $210 levels has built a significant resistance level (R1)
- Wedge seems to be forming since Jan 29, although still weak and not confirmed
- Volumes have normalized and are roughly balanced
- MACD mildly positive while RSI is in neutral territory.
I will monitor the R1 level closely in anticipation of a positive breakout since fundamentals remain sound. Failure to breakout would be a take profit signal for me and move to another trade.