Technical Pulse – Visa Inc February 14, 2020 387

The bullish sentiment for Visa (US: V) remains strong after prices hit a historical high of 210.26 on 22nd of January but subsequently headed into correction zone with prices closing below 208.00 for 16 periods. Based on the technical and wave analysis, the stock may exhibit a strong rebound after a series of corrections.

  1. Visa had a strong completion of the 3rd wave of the minor phase, ending its bullish rise at 200.0% of wave 1-2 by closing below 208.06.
  2. Subsequent price momentum indicates that the stock has failed to close above the 200.0% extension level at 208.00.
  3. Although the bearish dark cloud cover two days ago was considered invalidated, price did not break or close above the high of the dark cloud cover. Hence, we believe that the bullish momentum is slowing.
  4. A potential bullish flag is forming and the demand level coincides with the third base touching of the flag and the 38.2% retracement level of the third wave.
  5. RSI indicator shows a bout of strong overbought signal above the 60 overbought line.


*Should price breaks the psychological level of 210.00 in the next 3-4 periods, we will see an 3rd wave extension to 220.25.

*The 4th wave correction should not retrace below 189.48. Doing so will invalidate the wave count

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