Chart of the Week: Visa
Good morning everybody. Happy Wednesday. It’s time for our chart of the week, and we’re gonna focus on big credit card company Visa; V is the symbol here. Take a look at this chart – looking pretty strong. And there’s good opportunity to add some shares here on this recent pullback.
As you can see here, the stock made an interim low here at the beginning of April, like most stocks did after the markets got pounded after the Liberation Day announcement.
We see the stock has taken off nicely here and made a series of higher highs and higher lows off that 200 day moving average. Very important move off that 200 day moving average here.
We blasted right through all the resistance leading up to the current level, and even just last week, we had the all-time highs hit on Visa at $369.
We blew through the 50 day moving average, the 20 day moving average, and the 10 day moving average with some virtual ease. Again, higher highs, higher lows – our textbook definition of an uptrend.
Now we pulled back here last four or five days on a little bit of profit taking. But interestingly enough, on Friday last week, we pulled back to the 20 day moving average. Very significant that the stock fell right to that point, and maybe put in a doji, and may actually rally up above there. I think it’s gonna be headed up to like $400 over the next several months, but we’ll see what happens.
As far as the indicators are concerned, I like the strength in the on-balance volume here on the bottom. Higher highs, higher lows, pulled back a little bit here. So did the money flow. Again, you’d expect to see this when the price action pulls back on moderate volume.
We did see some good volume to the upside in April. It tapered off a little bit here as you can see. But it’s still pretty robust and is a little bit better than the average volume for the past 50 days. So 50 day moving average is down right around here. It’s a little bit better than we’ve had on that moving average.
So what do we see next? I see this stock possibly just moving sideways here for a little bit as it encounters that 20 day moving average for several days and make a move back up. And I think in June, maybe middle of June to the end of the month, we might see that move right back up to the all time highs. But I think on this pullback here from 360 all the way down to 350 – let’s call it around 4 1/2% – good spot to add some Visa here and just wait things out.
High quality name, high quality company, that I think has got some more upside. That’s Visa!
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