Is Visa About to ‘Charge’ Higher?
Visa broke out to new highs last week. Now it’s pulling back and trying to make a higher low.
The first bullish signal was on February 24, when the 21-day exponential moving average (EMA) rose above the 50-day simple moving average (SMA). That’s a sign of intermediate momentum turning more bullish.
Next, consider the $220 level. It was resistance at the end of 2020 and late last month. Now the credit-card company is trying to turn it into support.
Taking a longer-term view at the weekly chart, we see a consolidation pattern between $180 and $220 that started last May as the market rebounded from the Covid crash. It’s interesting that V remained pretty much trapped below old highs during that period, even as other stocks broke out. That’s especially true of the broader Technology bucket.
But this year, the shoe’s on the other foot. Big tech names like Apple are drifting as V breaks out. A quick scan on TradeStation showed that only one-fifth of XLK’s members have made new 52-week highs in the last two weeks. V is one of them -- along with Intel, Cisco Systems and Corning.
This isn’t a surprise because V is more geared toward a cyclical recovery in the economy than many other tech stocks. Again, technical analysis is miles ahead of the fundamentals.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
The first bullish signal was on February 24, when the 21-day exponential moving average (EMA) rose above the 50-day simple moving average (SMA). That’s a sign of intermediate momentum turning more bullish.
Next, consider the $220 level. It was resistance at the end of 2020 and late last month. Now the credit-card company is trying to turn it into support.
Taking a longer-term view at the weekly chart, we see a consolidation pattern between $180 and $220 that started last May as the market rebounded from the Covid crash. It’s interesting that V remained pretty much trapped below old highs during that period, even as other stocks broke out. That’s especially true of the broader Technology bucket.
But this year, the shoe’s on the other foot. Big tech names like Apple are drifting as V breaks out. A quick scan on TradeStation showed that only one-fifth of XLK’s members have made new 52-week highs in the last two weeks. V is one of them -- along with Intel, Cisco Systems and Corning.
This isn’t a surprise because V is more geared toward a cyclical recovery in the economy than many other tech stocks. Again, technical analysis is miles ahead of the fundamentals.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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