Pattern play: Visa

Visa reaches a new record high.

Uptrend 4

Visa (V), the credit card company, broke out to the upside of a bullish pennant pattern that price has been consolidating within since early-November. The RSI is over 60 and broke out to the upside of a bearish channel. The simple moving averages (SMAs) are positioned in a bullish manner, as the 20-day SMA is above the 50-day SMA and the 50-day SMA is above the 200-day SMA. The Fibonacci targets are roughly 228.00 and 233.00. If price pulls back then traders should look to the upper trendline of the pattern for support. If the upper trendline fails to hold price, then 204.00 would be the last line of support. If price falls below 204.00 it would be a bearish signal.

Source: GAIN Capital, TradingView

More from Technical Analysis

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.