Visa Inc. (V/NYSE): general review
24 May 2018, 12:25
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY STOP |
| Entry Point | 132.55 |
| Take Profit | 135.00, 137.00, 139.00 |
| Stop Loss | 130.00 |
| Key Levels | 124.50, 126.50, 130.00, 132.50 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 129.90 |
| Take Profit | 126.50, 124.00 |
| Stop Loss | 132.50 |
| Key Levels | 124.50, 126.50, 130.00, 132.50 |
Current trend
Following the trading session on May 23, Visa shares consolidated on the new 52-week high, continuing the upward trend started with the publication of a strong quarterly report in late April.
The key driver of the growth of the company's business was the success in the international markets - a quarterly growth in the volume of payments amounted to 19%, compared to 10% growth in the local market. New purchases of Visa in Latin America, the Caribbean region, and India, as well as the recent integration of Visa Europe, are also helping the growth. In addition, Visa forecasts a 9-10% increase in earnings per share due to the effect of tax reform.
During the previous week, Visa shares grew by 0.76%. S&P500 went up by 0.45% within the same period.
Support and resistance
At the moment, the company's shares consolidate after a fairly long growth. #V quotes are testing historical highs. Local support and resistance levels are 130.00 and 132.50, respectively. A technical correction is possible in the near future.
Indicators show mixed signals: the price has consolidated above MA(50) and MA(200), and MACD is 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: 130.00, 126.50, 124.50.
Resistance levels: 132.50.
Trading tips
If the price consolidates above the resistance level of 132.50, further growth of #V quotes is possible. Potential profits should be locked in by orders at 135.00, 137.00 and 139.00. Stop-loss will be placed at 130.00.
If the price consolidates below the "mirror" support level of 130.00, correction movement is expected. The moving potential is aimed at the area of 126.50-124.00. Stop-loss should be placed at 132.50.
Implementation time: 3 days.
Following the trading session on May 23, Visa shares consolidated on the new 52-week high, continuing the upward trend started with the publication of a strong quarterly report in late April.
The key driver of the growth of the company's business was the success in the international markets - a quarterly growth in the volume of payments amounted to 19%, compared to 10% growth in the local market. New purchases of Visa in Latin America, the Caribbean region, and India, as well as the recent integration of Visa Europe, are also helping the growth. In addition, Visa forecasts a 9-10% increase in earnings per share due to the effect of tax reform.
During the previous week, Visa shares grew by 0.76%. S&P500 went up by 0.45% within the same period.
Support and resistance
At the moment, the company's shares consolidate after a fairly long growth. #V quotes are testing historical highs. Local support and resistance levels are 130.00 and 132.50, respectively. A technical correction is possible in the near future.
Indicators show mixed signals: the price has consolidated above MA(50) and MA(200), and MACD is 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: 130.00, 126.50, 124.50.
Resistance levels: 132.50.
Trading tips
If the price consolidates above the resistance level of 132.50, further growth of #V quotes is possible. Potential profits should be locked in by orders at 135.00, 137.00 and 139.00. Stop-loss will be placed at 130.00.
If the price consolidates below the "mirror" support level of 130.00, correction movement is expected. The moving potential is aimed at the area of 126.50-124.00. Stop-loss should be placed at 132.50.
Implementation time: 3 days.
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