In Technical Analysis

Visa’s momentum looks set to continue

Visa’s momentum looks set to continue as the stock appears to be within a rising trend whilst a continued positive development within the trend channel is suggested. The stock has risen strongly since the positive signal from a rectangle formation at the break through the resistance at $85.58. The stock has support at $89.00. Positive volume balance with high volume supporting rising prices and low volume in days of falling prices. RSI is overbought suggesting that the stock has strong upward momentum in the short term. The stock is overall assessed as technically positive for the medium long term. The objective at $95.70 has being met, but the formation still gives a signal in an upward direction.

Visa Stock Chart

Visa Stock Chart

Positive Technical Indicators

 

Bollinger Bands:

Bollinger Bands developed from the concept of trading bands and can be used to measure the high-low range of Visa stock price relative to previous trades. The current stock price of $95.79 is in the lower range of Visa Bollinger bands.

Moving Average Convergence Divergence or MACD:

When the MACD rises above the signal line, it typically indicates a bullish trend and most likely the stock prices will go up. The Visa MACD indicator is above 0 indicating a bullish trend.

Relative Strength Index:

This technical indicator compares the relative strength or weakness of a stock. It measures the magnitude of rise or fall in stock price movements. 66.97 is the RSI value of V stock.

In addition:

 

Long term revenue growth has been strong with a 5 year compounded annual growth of 11.4%.

Visa’s average operating margin of 53.3% was exceptional.

Net margins came in at average 28.8% for Visa over the last twelve months.

Visa’s return on invested capital of 13.4% is good.

 

Trading at a PE ratio of 30.1, V stock is overvalued in comparison to industry average multiple of 21.6.

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