Practice Discipline With Your Visa

 | Feb 06, 2018 | 9:47 AM EST
  • Comment
  • Print Print
  • Print
Stock quotes in this article:




Visa Inc. (V) was reviewed just a few days ago. In a matter of hours the chart has changed rapidly. The other day, I wrote, "With the stock price of Visa's competitor MasterCard (MA)  soaring today, we shouldn't get negative on V. I would suggest raising sell stop protection to a close below $114 from a close below $106." Let's revisit the charts.

In this daily bar chart of V, below, we can see how in two short days V declined to test the rising 50-day moving average line. Shorter moving averages or weighted moving averages would have been broken.

The rising 200-day line is below the market, and it would intersect around $105 now. The volume of trading increased to around 15-million shares -- heavy, but not extreme.

The On-Balance-Volume (OBV) line was rising right up until Friday. The trend-following Moving Average Convergence Divergence (MACD) oscillator quickly crossed to the downside for a take profits sell signal. An outright sell signal (the way I use this indicator) does not come until the oscillator crosses below the zero line.

In this weekly bar chart of V, below, the only indicator now showing weakness is the MACD oscillator, which is poised for a bearish crossover.

In this Point and Figure chart of V, below, prices are in a down column of "Os". There is some potential support form the consolidation in the $113-$107 area.

Bottom line -- traders should probably keep the stop on a close below $114 (see the first paragraph above) because discipline is a good habit to practice. A close below $107 could open the way to further weakness.

Columnist Conversations

View Chart »  View in New Window » BA chart I'm STALKING this one for a buy trigger........
View Chart »  View in New Window »   WEEKLY
BABA is still dancing on key weekly support here.  Wait for a trigger! View Chart »  Vi...
BABA is still dancing on key weekly support here.  Wait for a trigger! View Chart »  Vi...



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.