Trade Update VISA: Time to Collect Some Profits
Visa is trading at $195+ and the trade is up +15 points from Entry. At this point we suggest traders lock in those 15 points move by selling half position. The remaining position should be protected with a stop loss so the trade remain a profitable.
See chart below with updated trade signal
last trade update: Our December 5th BUY signal on Visa worked as planned. We mention it at the $180 level and now just under $190 and according to our plan, we should move into the $200 target soon. It is important that at this point traders with position protect their gains. See chart below for trade update.
Our December 4th 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.