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.
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