Head and Shoulders/OUCH!V beat earnings and raised dividend, but still manage to drop beneath the right shoulder of what appeared to be an inverse head and shoulder pattern earlier/not anymore as that pattern failed. The head and shoulder top has won this battle for now. Mastercard and GPN are struggling as well. Apparently this is not the best time for credit card stocks. I did not see this coming but I should have since there is a H&S pattern staring at me )o: and also because MA started falling as well.
V gapped down on a BAD candle, a Marubozu , which is also known as a candle that is "shaven" and is very bearish. The candle exhibits selling pressure throughout the trading session and a close at the low of the trading session. There is no top wick or a bottom shadow. The red candle opened at the top of the body and closed at the bottom of the candle body, exhibiting very little buying pressure to help it out. Then possible panic selling began to kick in.
Price is below the bands set on 80 which shows extreme selling pressure. I had
Long term high is 252.57 which is also the most recent high. The head is the all time high. Short interest is low at 1.6% and negative volume is still very high for Visa.
A head and shoulders top is not a valid pattern until the neckline which was support, now resistance, is broken. It is broken and Visa has done a nose dive past support levels even with good earnings . Oversold on RSI , but a security can dwell in oversold territory for an extended period of time, especially if there is a lot of supply at that level.
No recommendation. I am waiting on this to chill out so I can buy it )o: Possible bounce up very soon as price returns to the bands eventually, but I plan to be sure the move up is solid before buying this to hold on to for any length of time. William's alligator indicates that now is not that time as these shorter term moving averages that are used to build this indicator are out of chronological order and pointing down.
Price may fall to a fib level of the projected measurement down using the top of the head to the neckline as a gauge. There is always the chance V will not fall much, if any further, but 38% would be 208, 62% is 200.30 and 79% would be at 194.90. 187.95 is a fall of 100%. It is also possible to fall below 100% or an extension of 100% )o:
It is a good idea to look at the sky, the ground, and in the rearview mirror before making a decision.
V had a move up today but did not hold the high so far. Perhaps this will recover before down targets (in orange) are met.
