On October 28th, Visa Inc. (NYSE: V) delivered its earning for Q3 2020. The company showed a much better earnings-per-share number than the initially-forecasted $1.09 figure. The actual reading came out with a 2.75% increase, at $1.12. This managed to save the stock from drifting further south, however, looking at its technical picture on our 4-hour chart, we see that the price continues to trade below a short-term downside resistance line drawn from the high of October 12th. If that downside line stays intact, there is a good chance V might move back down again. That said, given the stock’s proximity to that line, we will take a cautious approach for now and wait for a break through one of our key levels first, before examining the next directional move.
If V does find strong resistance near that downside line and then slides back below the 183.78 hurdle, marked by the current low of this week, that could open the door for a further move south, potentially targeting lower areas. Such a move might keep new buyers away from entering into the game. The share price may drift towards the lowest point of October, at 179.20, a break of which would confirm a forthcoming lower low and could clear the way for a move to the 173.77 zone. That zone marks the low of May 14th.
After bottoming at the end of October, the RSI and the MACD started climbing higher. The RSI is fractionally below 50, but points slightly to the upside. The MACD, although above its trigger line and pointing higher, remains below zero. Despite the fact that both indicators are showing willingness to climb further north, the overall price momentum is still in the negative territory. This supports our idea of standing pat for now.
Alternatively, if the share price breaks the aforementioned downside line and pushes through the 193.63 barrier, marked near the low of September 25th and the high of October 27th, that may attract more new buyers into the game. V could then travel to the 195.68 obstacle, a break of which might clear the way to the 200.36 hurdle, marked by the high of October 21st. Slightly above it lies another potential resistance area, at 202.60, marked by the high of October 16th.
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