FeedTheBull and I have both liked $V for it’s recent strength. The technicals may indicate further near-term upside.
100-Day with 1-Day bars
The trend is clearly higher. Current prices rest on the trend line for potential near-term support. The 20-day moving average is approaching a crossover of the 50-day moving average. Volume remains consistent. The price action is consolidating around $82. I’d argue a clear breakout above the $84 level would be a very bullish sign here.
10-Day with 60-Minute bars
There is a retracement to the 50% levels. The pricing is consolidating around the $82.00 level.  Notice again, the SMA(20) looks poised to trump the SMA(50) if buyers arrive. The trend is upward with higher-highs and lower-lows.
10-Day with 15-Minute bars
Today’s trading gapped before sliding to a prior levels of support into consolidation. This base along with the help of the SMA(20) eliminate some downside risk. A bullish cup-and-handle pattern is possibly forming.
How I will trade Visa
Just because I like the charts doesn’t mean I’d buy on the open.
I’ll buy only if there is confirmation of potentially higher prices with:
- a crossover of the 20-period and 50-period moving averages
- buying evidenced with higher buying volume
- I’d also like strength in the markets over all as control of the price has been been battled-for by the bulls and bears
Failure to meet these confirmations will side-line me into waiting to observe the price action near or below the 80 dollar level.
What do you think @FeedTheBull?
Disclosure: $V: no position
Updated price action (6-26-2008)
I’m going to let the charts do the talking on why I never opened a long position in Visa (V) today:
In short, money poured out of the equity markets due to oil topping at 140.39 during intraday trading and closing up $5.09 to $139.64. Further downside pressure on the Financials came from news of Goldman Sachs and American Express softening their outlook on the consumer credit market.
I leave you with this broken chart of what happens when money’s spooked out of equity markets:
Disclosure: $V: no position
