In Visa shares there is a correctional decline of 5.5% from the 52-week high of September 9. Since the beginning of June, the emitter’s quotes grew by 9%. The company announced the closure of the acquisition of Verifi, a technology leader in chargeback.
Within the previous week, the stock of Visa reduced by 3.00%. S&P500 went up by 0.66% within the same period.
The current technical picture indicates a possible correction of the company’s shares after prolonged growth. A classic reversal formation (divergence of the price and MACD indicator) has formed in the trading instrument. At the moment, #V quotes are consolidating in the range of 174.00–180.00. The emitter has the potential to decline.
Indicators don’t give a clear signal: the price has consolidated below MA(50) and MA(200); MACD histogram has consolidated in the negative zone. Positions are to be opened from key levels.
Comparing company’s multiplier with its competitors in the industry, we can say that #V shares are undervalued.
Support levels: 174.00, 168.00, 165.00.
Resistance levels: 180.00, 187.00.
If the price consolidates below the support level of 174.00, #V may correct. Potential profits should be locked in by orders at 168.00, 162.00, and 157.00. Stop loss – 180.00.
If the price consolidates over 180.00, one should consider buying the company’s shares. The target movement level will be 190.00–195.00. Stop loss – 174.00.
Implementation period: 3 days.
Visa Inc. operates.as a payments technology company worldwide.The company facilitates commerce by transferring value and information among consumers, merchants, financial institutions, businesses, strategic partners, and government entities.It operates VisaNet, a processing network that enables them to authorize, clear and fix payment transactions;and provides fraud protection to account holders and ensures payment to purchasers.In addition, the company provides card products, as well as value-added services.It provides its services under the brands of Visa, Visa Electron, Interlink, PAY, V and PLUS.Visa Inc. was established.in 1970 and has its headquarters in San Francisco, California.
Robert Thomas has over 14 years experience in the investments on the institutional side of markets and has an “insider” view on the markets. In addition, he is an futures day trader that focuses on analyzing fundamentals, specifically earnings reports and technical levels. He has a Masters Degree in Business and Economics.