Trade Update: Our Visa Position Hit Final Take Profit at $204
20-1-20 : Our Visa position hit Final Take Profit zone at $204.0 and currently is trading at $204.70. Our entry on December 5th at $180 move to our ultimate target as Visa trading above $200. The trade move a total of 24 points within a month and a half. It’s time to collect all profits and wait for the stock to reset in order to find another good risk reward entry. Below you can see the updated chart with our trade.
Our Visa (V) BUY signal from December 5th at $180 continue to charge higher, closing yesterday trading session at $195.0. Looking at the broader market indecies, we might get a price correction soon, considering the recent run we have seen. Therefore, we believe it would be wise to take some profits at this point (locking a 15 points run) on half position and use a stop loss for remaining position so this trade will remain a win win situation. Visa will report quarterly earnings on January 30, 2020 so keep that in mind if you carry a position into it. Below you can see an updated chart with our signal update.
December 23th update: This is a follow up for our December 5th trade review for VISA (V), which traded at $180 and was set for a major breakout with a first price target at the $200 price level. On December 6th, we saw VISA (V) breaking out and closing above $184 resistance level, follow up by a three shallow ordinary correction days and again breaking into new all time highs with good volume on December 19-20th hitting $188.0 price level. While Visa (V) seems to be a mature company, they still find growth in developed nations in Africa, Asia & South America. As mentioned in our previous article, VISA (V) is on its way to the $200 price level and traders involved from the $180 price level can now protect their gains on the way up.
VISA (V) Chart- Click for large clear view
December 5th trade signal: Visa, Inc. provides digital payment services. It addition, they facilitate global commerce through the transfer of value and information among global network of consumers, merchants, financial institutions, businesses, strategic partners, and government entities. Visa offers debit card, prepaid products, commercial payment solutions, and global ATM services. Since it was initiated in 1958, Visa took over the payment process industry and continues to growth.
Currently, V stock is up nearly 38% year-to-date! Over performing the US indices. Considering booming economy and rising consumer sentiment, we believe Visa will continue dominate.
Recent reports shows that Black Friday and Cyber Monday sales figures reinforce the bullish story for Visa stock. Recent article on “USA Today” showed that Americans has spent a record amount during the last Black Friday & Cyber Monday.
Research firm Adobe Analytics expected online sales to hit $9.4 billion. That represents 19% rise from 2018’s numbers and also mark an all-time record.
The shift in payments to new methods such as mobile, cards, online and via wearables (smart watch for example) paves way for long term growth. Lastly, the acquisition of Visa Europe provides long-term growth strategy. Also, its international business has been expanding in numbers and services, while the company continues to maintain a very strong capital position, making it a stable growth company.
Looking at Visa chart below, we can see how the stock has been constantly rising with very limited shake offs. Currently, Visa is trading at $180 level; the price is above the long term moving average and the 50 day average which shows good support and near term positive price momentum. A break above recent resistance at $185 level, should quickly send Visa to trade above $200.