V still stuck within tight trading range
Visa Inc. (V) Technical Analysis Report for Apr 16, 2018 | by Techniquant Editorial Team
V ended Monday at 121.88 gaining $1.13 (0.94%). Today's closing price of 121.88 marks the highest close since March 21st. Trading $0.76 higher after the open, Visa was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move past the prior day's trading range in a lackluster session. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (V as at Apr 16, 2018):
Monday's trading range was $1.36 (1.11%), that's far below last trading month's daily average range of $2.53. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being slightly above average. Prices continued to consolidate within a tight trading range between 119.62 and 122.87 which it has been in now for the last trading week.
Unable to break through the key technical resistance level at 122.25, the stock closed below it after spiking as high as 122.87 during the day. The failure to close above the resistance could increase that levels importance as resistance going forward.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish. The share managed to break above the 50-day moving average at 120.73 today for the first time since April 12th.
Selling might accelerate should prices move below the nearby swing low at 119.62 where further sell stops could get triggered. With prices trading close to this year's high at 126.66, upside momentum might speed up should V be able to break out to new highs for the year. Trading close to February's high at 126.04 we could see further upside momentum if potential buy stops at the level get activated.