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Visa Has Pulled Back

Long
NYSE:V   Visa Inc
Credit-card giant Visa is an interesting stock. Officially, it’s a member of Technology. But it’s also cyclical because of its obvious connection to spending and the financial sector.

Not surprisingly, V broke out to new highs in late April as the economy moved closer to reopening. Quarterly results beat consensus and business trends for the current period were strong.

V peaked at $237.50 following the news. It then ran out energy and dove back toward $220. That’s an interesting level because it’s near a peak from the end of last year.

Two other patterns stand out. First is a trend line running along the lows of late January and late March. Second is the 50-day simple moving average ( SMA ).

Third, notice how stochastics have dipped back to an oversold level.

It’s a pretty recognizable setup overall with trend, levels and macro conditions all potentially lining up for the bulls.

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Comments

Great setup . Thanks
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