VISA - Point of Entry?
VISA is another stock that I have been keeping an eye on recently as it shares a similar story tto i Master Card (tradingview.com/chart/MA/4z7fVUZs-MA-Falling-Knife-or-Buy-the-Dip/)
Analyst ratings on the stock remain overwhelmingly positive with a consensus target around $241 despite mediocre earnings results that resulted in some selling pressure and increased volatility lately.
On the technical side the stock seems somewhat undecided however;
Positive Factors
Negative Factors
My trade;
I went long in yesterdays trading at $200
Stop Loss outside recent lows around $191 (Oct/Nov gap levels) to account for incr. vol.
Take profit set at $230 although I'd eye the recent $220 highs as a first target
Analyst ratings on the stock remain overwhelmingly positive with a consensus target around $241 despite mediocre earnings results that resulted in some selling pressure and increased volatility lately.
On the technical side the stock seems somewhat undecided however;
Positive Factors
- Stock recovered above 200 EMA which reinstated it as support level
- Back at the 0.786 Fibonacci levels which for now is a (soft) support
- Dynamic resistance level has been broken and indicates more bullishness
- Back at the gap base created on November 2020 earnings
- RSI bounced off oversold territory back to neutral (50's)
Negative Factors
- MACD still indicates bearish sentiment
- 100 EMA could proof resistance
- No confirmed long-term trend. The stock is moving pretty much sideways since mid 2020
- Rather large intraday swings, which makes SL setting more difficult
My trade;
I went long in yesterdays trading at $200
Stop Loss outside recent lows around $191 (Oct/Nov gap levels) to account for incr. vol.
Take profit set at $230 although I'd eye the recent $220 highs as a first target
Note
Stock dipped down below my entry level and reversed back up just short of my SL at $191. Post earnings and Dividend payout I updated my chart;
My findings;
- Multiple failed attempts to break the $210 levels has built a significant resistance level (R1)
- Wedge seems to be forming since Jan 29, although still weak and not confirmed
- Volumes have normalized and are roughly balanced
- MACD mildly positive while RSI is in neutral territory.
I will monitor the R1 level closely in anticipation of a positive breakout since fundamentals remain sound. Failure to breakout would be a take profit signal for me and move to another trade.
Note
Maintaining position post drop on March 19 as long as the pre-breakout lows ($203) is not broken. Will work with a dynamic SL at 10% OTM from here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.