Looking at the technical picture of the Visa Inc stock (NYSE: V) on our 4-hour chart, we can see that after hitting strong resistance near the 217.25 hurdle in the beginning of September, the share price declined and is now trading below all of its EMAs. In addition to that, the stock is running below a short-term tentative downside resistance line taken from the high of September 2nd. Even if V rebounds somewhat, as long as that downside line remains intact, the stock could easily resume the slide.
As mentioned above, if the share price moves back up a bit, but struggles to overcome either the 200 EMA, or the aforementioned downside line, V could reverse south again and make its way towards yesterday’s support, at 194.75. If this time that support breaks, this would confirm a forthcoming lower low and could open the way to some lower areas. The stock might easily drift to the 193.15 obstacle, a break of which may set the stage for a push to the 189.45 level, marked by the low of July 31st.
The RSI is currently pointing slightly higher, but remains below 50, which supports the idea of seeing a small recovery before another possible drop. The MACD is still pointing lower, while running below zero and its trigger line. The two oscillators on the 4-hour chart still indicate negative price momentum.
Alternatively, if the aforementioned downside line breaks and the price rises above the 205.60 barrier, marked by the high of September 18th, that could bring more buying interest into the game. Such a move would signal a change in the short-term trend, potentially allowing the price to accelerate higher. V might then travel to the 208.20 obstacle, or even to the 211.20 zone, marked by the inside swing low of September 1st. If there are still enough new buyers, this may help the stock to continue traveling north, where the next potential resistance level could be at 213.95, marked by the high of September 1st and by an intraday swing low of September 2nd.
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