VISA INC. Price Hits a New Lifetime High

Summary

  • VISA INC. gained 1.54 percent in the last trading session and has delivered ~14.81 percent returns in the last one month.
  • Post breaking out of a crucial resistance level the stock hit a new lifetime high.
  • Stock prices are trading in a rising wedge formation on the daily chart and RSI (14-period) is trading in an overbought zone.
  • VISA stock price has broken out of its rising wedge pattern on the weekly chart taking major support from the 50-period simple moving average (SMA).

VISA INC. (NYSE:V) witnessed a sharp rally from the low of USD 205.78 made on 25 March 2021 to a new lifetime high of 236.27 (on 28 April 2021), a gain of ~14.81 percent in this short span. The stock price is trading in a strong upward trend, forming a series of higher tops and higher bottoms, which indicates bulls are in action. On Wednesday, the stock prices closed at USD 233.45, up by 1.54%, and was one of the top gainers of the Dow Jones Industrial Average index. The stock outperformed some of its competitors, such as American Express Co. (NYSE: AXP), Western Union Co. (NYSE: WU) and WEX Inc. (NYSE:WEX).

On the daily chart, the stock has broken out of its upward trend line (black color line in the below chart) at 231.60 level and made a new all-time high. The prices are also trading in a rising wedge pattern for the past five months and currently, hovering around the upper band of the pattern. The trading volume in the stock has seen a upward move in the last trading session, which indicates higher involvement from the market participants.

VISA INC. on the daily chart

Source: Refinitiv, Thomson Reuters; Analysis: Kalkine Group

Furthermore, the prices are trading above the Parabolic SAR indicator, acting as a crucial support zone for the stock. The price is well placed above its 21-period SMA, which is acting as an important support for the stock below the upper band of the wedge pattern. However, the momentum oscillator RSI (14-period) is trading in an overbought zone at ~72 levels indicating a possibility of downside correction from the current level.

The stock has broken out of its rising wedge pattern at USD 225.60 level on 21 April 2021 on the weekly time frame chart. After consolidating for more than 8 months in a wedge pattern, the price registered a decisive breakout that suggests a change in the trend from sideways to upward. The Stock has also broken a horizontal trendline resistance level (black color horizontal line in the below chart) at USD 216.85 level.

VISA INC. on the weekly chart

Source: Refinitiv, Thomson Reuters; Analysis: Kalkine Group

Besides, the price is trading above its 50-period SMA, acting as a crucial support level below the lower band of the wedge pattern. The momentum oscillator RSI (14-period) is trading at ~62 levels, indicating a positive trend for the stock. MACD (Moving Average Convergence Divergence) is also showing a positive crossover and indicates an upside direction for the stock. The Parabolic SAR indicator is trading below the market prices and acting as immediate support for the stock below horizontal trendline breakout level.

VISA INC. price seems to be in an upward trajectory, as indicated by the above chart analysis and technical indicators outlook. Currently, the share prices are holding the key support levels. The chart pattern suggests that there might be more action expected in VISA Inc.

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