Visa Inc (US: V) downtrend has been ongoing after it broke off the larger rising wedge which starts from 27^th March 2020 to 26^th July 2021. Despite the ongoing downtrend, Visa’s technical indicate that there is a short term rebound to test the higher gap resistance zone at US$225.26-US$231.12:

1. Visa strong gap below on Wednesday was well supported after a hammer was seen rebounding at support zone 1 at US$200.47-US$204.36. To add on, the support zone 1 lower boundary is 161.8% extension level of the previous head and shoulder formation.
2. The hammer was also seen rebounding from 1:1 ratio of the Fibonacci expansion level at US$199.17 as well as the lower boundary of the Bollinger band.
3. Should RSI have a uptick when the market open for trading, there will be a potential bullish divergence.

*Expected timeline of the trade is 15 weeks from the date of report issuance.

*The downside trend remains and judging from the price structure, there will be one more inverse N wave down and likely support zone 2 will be the main rebound zone.

CHART LEGEND

Bollinger Band

Red dotted line = Upper Bollinger band

Blue dotted line = 20 Periods MA

Green dotted line = Lower Bollinger band