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 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)

(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

Conclusion

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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The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.