Chart of the Week: Visa
Happy Wednesday. It’s time for our chart of the week. And this week we’re going to be focusing on big credit card issuer Visa. Symbol V is the letter. Let’s take a look at Visa. It’s been a really strong stock since the beginning of August.
As we can see here, this stock put in a nice bottom here at the end of July, and ever since it’s been making a nice series of higher highs and higher lows. That is our textbook definition of an uptrend.
Once it broke through this resistance from back in April and May, we launched up towards the old highs, which were tagged back in April. We had a big sharp move back down, but we moved past that level here. I like this particular move. It’s gone vertical of course. And as you can see, relative strength is overbought. But overbought doesn’t mean sell. Overbought means be wary and be cautious and ready for a pullback.
Look at how many pullbacks this stock has had over the past month and a half. We have one right here, one right here. It’s not all that apparent on the chart, because you see these long wicks here with these candle formations. But this is a pullback, right back up again. This is a pullback, right back up again. This is a pullback, and a gap higher and then we filled that gap. So we do have a gap open over here, so if the stock does fall through, we do have some downside – about 30 points of downside – over here.
By and large, the technicals are strong. MACD is on a buy signal. Chaikin money flow has been strong, and volume trends are also positive.
There’s nothing really wrong here with Visa, other than the fact that it could pull back to maybe this area over here – about $280 – 285 would be a good spot to add.
but I think this stock’s got some strength. It’s going to make it pass $300 here in very short order.
So took a look at Visa when you get a chance.
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