V closes lower for the 2nd day in a row
Visa Inc. (V) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, V finished the month -1.43% lower at 190.40 after tanking $3.66 (-1.89%) today on high volume, strongly underperforming the Dow Indu. (0.44%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 192.12, the share confirmed its breakout through the prior session low after trading up to $2.67 below it intraday.
Daily Candlestick Chart (V as at Jul 31, 2020):
Friday's trading range has been $5.24 (2.7%), that's above the last trading month's daily average range of $4.22. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for V.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on July 21st, V actually gained 1.21% on the following trading day.
Prices are trading close to the key technical support level at 189.23 (S1).
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Further selling could move prices lower should the market test June's nearby low at 186.21.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Visa. Out of 235 times, V closed higher 64.68% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 73.19% with an average market move of 2.08%.