Visa shares: correction continues – UBS column

Review: The long-term upward trend in Visa shares could only be stopped temporarily by the Corona crash in spring. After a brief dip below the medium-term support at USD 151.56, buyers struck and provided important buy signals that ended the crash and at the same time propelled stocks into the USD 200.00 area through mid-June. Between the hurdle at USD 202.18 and the earlier barrier at USD 184.85, the value subsequently trended sideways before another buying wave set in and even led to the rise to the new record high at USD 217.35. Here, however, the bulls’ strength weakened and the value fell back to the USD 194.48 support that has been defended so far.

Outlook: The shares of Visa have been in a short-term correction since the beginning of September, which is clearly taking the form of a bullish flag. However, the downward pressure has increased again in the last week.

The long scenarios: In the short term, there could now be another test of the hold level at USD 194.48. This should be defended by the bulls, followed by a breakout above the upper downtrend line. A rise above USD 207.89 would unleash new strength and lead to a buying impulse of up to USD 217.35. Above this, the area around USD 230.00 would be achievable.

The short scenarios: If, on the other hand, the value sustained below the USD 194.48 mark, this would already result in a bearish signal. A relapse to the USD 184.85 level would be the receipt for this sell-signal. If the bulls fail to intervene there, there could already be a sell-off to USD 173.82.

Disclaimer: The text is a column of the UBS. 4investors is not responsible for the content of the column and therefore does not necessarily have to agree with the opinion of the 4investors editorial team. Any liability and claims are therefore expressly excluded by 4investors!

At a glance – chart and news: Visa


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