Visa fell sharply on October 27 following a couple of negative headlines. Now after a bounce, it may be ready for further downside.
The main pattern on today’s chart is the price level around $220. It was a low in May and near the lows of September and mid-October. There’s now a chance of it becoming resistance.
Next, V has failed to hold its 200-day simple moving average (SMA). The 50-day SMA has also crossed below the 200-day SMA.
Turning to the weekly chart, notice how the late-October selloff produced a bearish outside candle. It may also be turning into the right shoulder of a head & shoulders reversal pattern.
The fundamentals behind the drop are potentially negative because V has been paying higher incentives to banks. Several analysts have responded with lower price targets. Antitrust scrutiny may also be looming on the horizon.
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The main pattern on today’s chart is the price level around $220. It was a low in May and near the lows of September and mid-October. There’s now a chance of it becoming resistance.
Next, V has failed to hold its 200-day simple moving average (SMA). The 50-day SMA has also crossed below the 200-day SMA.
Turning to the weekly chart, notice how the late-October selloff produced a bearish outside candle. It may also be turning into the right shoulder of a head & shoulders reversal pattern.
The fundamentals behind the drop are potentially negative because V has been paying higher incentives to banks. Several analysts have responded with lower price targets. Antitrust scrutiny may also be looming on the horizon.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
