Financial services firm Visa ( V) is scheduled to report their latest quarterly numbers on Tuesday after the close of trading. While I have no knowledge of what they are going to report, I do have an opinion on the direction of their stock price. Let's check.
In this daily bar chart of V, below, we can see that prices have been in a choppy but largely sideways trading range for the past six months. Looking back a year we can see that prices have lost ground. Selloffs in recent months have been sharp and steep. Prices are trading below the declining 50-day moving average line and below the declining 200-day line.
The On-Balance-Volume (OBV) line is down from late July but has not made a new low in recent months. The Moving Average Convergence Divergence (MACD) oscillator is crossing below the zero line for a new outright sell signal.
In this weekly Japanese candlestick chart of V, below, we can quickly see upper shadows at the top of each rally failure in the past few months. One large upper shadow can be seen on the most recent candle pattern. The slope of the 40-week moving is negative.
The weekly OBV line is weak and pointed down. The MACD oscillator is bearish.
In this daily Point and Figure chart of V, below, we can see a potential downside price target of $187.
In this weekly Point and Figure chart of V, below, we can see a price target in the $141 area.
Bottom line strategy: I use my Visa credit cards often but that does not move the needle enough and the stock price looks like it will retest the early December/March lows. Avoid the long side.