u s stock focus visa continues to show positive elements 2691952017

In its latest fiscal Q2 2017 earnings report, Visa (V) had recorded earnings and revenue that surpassed market’s consensus. Earnings per share at $0.86 versus […]

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By :  ,  Financial Analyst

In its latest fiscal Q2 2017 earnings report, Visa (V) had recorded earnings and revenue that surpassed market’s consensus.

  • Earnings per share at $0.86 versus an expectation of $0.79
  • Revenue at $4.48 billion versus an expectation of $4.295 billion

Now, let’s take a look at its latest technical elements

Medium-term technical outlook on Visa (V)

Visa_(weekly)_03 May 2017

Visa_(daily)_03 May 2017

Visa vs S&P 500_daily_03 May 2017(Click to enlarge charts)

Key technical elements

  • Since 02 December 2016 low, Visa has been evolving within a medium-term bullish ascending channel with its lower boundary now acting as a support at 90.30 (see daily chart)
  • The aforementioned ascending channel support also confluences with the former range top of 17 March/05 April 2017 and the 50% Fibonacci retracement of the current up move from 11 April 2017 low (see daily chart).
  • The significant medium-term resistances stands at 94.10 and 96.95/98.30 which is defined by the upper boundary of the aforementioned ascending channel, the upper boundary of the longer-term ascending channel from 16 October 2014 low and a Fibonacci projection cluster (see daily chart).
  • The daily RSI oscillator remains positive above its supports accompanied by an increase in volume. These observations suggest that medium-term upside momentum of price action remains intact.
  • The relative strength analysis of Visa versus S&P 500 continues to advocate a potential further outperformance of Visa against the benchmark S&P 500 (refer to the last chart).

Key levels (1 to 3 weeks)

Intermediate support: 92.00

Pivot (key support): 90.30

Resistances: 94.10 & 96.95/98.30

Next support: 83.30/82.50


Therefore as long as Visa manages to hold above the 90.30 pivotal support, it is likely to shape another potential uoleg to target the next resistances at 94.10 and 96.95/98.30.

On the other hand, failure to hold above 90.30 may open up scope for a deeper decline to test the longer-term ascending channel support at 83.30/82.50.

Charts are from eSignal


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