Shares of Visa (V) are yet again breaking out to new highs. Barring the market turning south, I don't see much to stand in their way, either.
It's been an almost picture perfect stair-step of resistance turning to support. The latest puts minor support at the $141-143 level, with additional support at $136, and with more significant support at the breakout level around $125-127, which happens to coincide with the 200-day moving average at $125. There's an upward sloping trend line in play, as well, which has held up nicely all year long. The MACD has turned positive, and the RSI has broken out of a nice base and is climbing, too.
I've been long this name for a while and will continue to buy any dips of significance. Just this past week, as it appeared to be gaining momentum for a breakout, I bought October $150 calls in both my trading account and IRA.
Should we get a dip to that $125 area, I'd be a buyer of outright shares for long-term holding.
If you're looking for a consumer play, this is the perfect one. While there are some great companies to own in that actual sector (like KORS, ULTA, LOW, HD, etc), this captures them all because there's a very strong chance you'll use the same card at each one, and there's a strong chance it has "VISA" in the corner of the card.
I like MA and AXP, too, but V is my preference (DFS to a lesser extent, but growing direct and tuition loans give reason for concern longer-term as the credit cycle squeezes). If you don't own V already or want to add to an existing position, you should be looking to buy any decent weakness!
It's been an almost picture perfect stair-step of resistance turning to support. The latest puts minor support at the $141-143 level, with additional support at $136, and with more significant support at the breakout level around $125-127, which happens to coincide with the 200-day moving average at $125. There's an upward sloping trend line in play, as well, which has held up nicely all year long. The MACD has turned positive, and the RSI has broken out of a nice base and is climbing, too.
I've been long this name for a while and will continue to buy any dips of significance. Just this past week, as it appeared to be gaining momentum for a breakout, I bought October $150 calls in both my trading account and IRA.
Should we get a dip to that $125 area, I'd be a buyer of outright shares for long-term holding.
If you're looking for a consumer play, this is the perfect one. While there are some great companies to own in that actual sector (like KORS, ULTA, LOW, HD, etc), this captures them all because there's a very strong chance you'll use the same card at each one, and there's a strong chance it has "VISA" in the corner of the card.
I like MA and AXP, too, but V is my preference (DFS to a lesser extent, but growing direct and tuition loans give reason for concern longer-term as the credit cycle squeezes). If you don't own V already or want to add to an existing position, you should be looking to buy any decent weakness!