Stock of the day: Visa

Today, we are checking in on Visa whom we discussed in the middle of August. Back then, we were quite optimistic after spotting a very handsome bullish reversal pattern: double bottom. The formation was in its early stages – we hadn’t seen the breakout of the neckline yet, which would have definitely been a buy signal. This is how we concluded the situation on the chart:

“The price closing a day above that area would be a technical trigger to a major buy signal. As for the target, the first level that comes to mind is the long-term down trendline (orange) connecting lower highs since July 2021. Chances for a positive solution here are high, but remember, from a price action point of view, it’s not a sealed deal yet. The price closing a day above the 189 USD is a must.”

That was spot on! The price went higher almost straight away and reached beyond our target. A few days ago, the price was even trading above 217 USD resistance (orange). Most recently, we have observed a drop that can be quite dangerous. Should the price manage to come back inside of the channel down formation (red), we will get a proper signal to sell. It will go in line with the decisive bounce off the 217 USD that we already mentioned. I would say that the current sentiment is rather negative.

On the other hand, the price breaking and closing the day above the orange resistance would be a nice buy signal, but chances of that are now rather limited.