Technical Analysis – Is Visa stock set for its next bull run?
- Visa stock trends southwards; reaches crucial support area
- Technical signals remain discouraging; bears could take control below 258
- Earnings scheduled for release today after market close
Visa stock is currently located at the bottom of a short-term bearish channel and around the 200-day exponential moving average (EMA) at 264.50, which has been a critical pivot point since late 2022.
Hence, it will be intriguing to observe if the stock can reverse its direction and move upwards in the near future. Despite this, investors might exercise some caution as the stochastic oscillator keeps trending southwards, and the RSI is struggling to surpass its 50 neutral mark.
Should the bears take control of the 200-day EMA and the support trendline from October 2022, attention will shift to the channel’s lower boundary at 259.25. The 50% Fibonacci retracement of the latest upleg adds extra credence to the region. Therefore, a violation there would worsen the outlook, prompting an immediate downfall towards the 61.8% Fibonacci number of 251.80. The 245 mark could be the next destination.
Another scenario is that the bulls may seek to close above the 20- and 50-day EMAs with scope to challenge the resistance trendline zone of 275.85-277.00. If their mission proves successful there, the recovery phase could pick up steam towards the April-May border of 282. Further up, the door will open for the all-time high of 290.69 and the ascending trendline, which connects the July 2021 and March 2024 highs at 295.
Overall, Visa’s stock is positioned at an appealing support level, creating optimism for potential upward movement. Still, the technical signals are not in favor of the bulls, implying that there might be ongoing downside pressure.Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
