Visa, ready for correction?
Cashless payment is becoming more and more popular. Visa Inc, the payment service-provider from Foster City in California, is one of the essential players in this field, alongside Mastercard. You can tell from the quarterly figures that the industry is in a state of flux. In the first quarter of 2019, the company was able to increase sales there by 12%, and profit increased by 18%.
This development is also reflected in the share price. On May 1, the share price reached an all-time high of over US$165. This means that the shares have risen by around 19% since the beginning of the year.
The question is whether a correction is imminent.
The MACD indicator showed a bearish cross a few days ago, and the histogram is in negative territory.
If the bears take over, the first support in the US$155.13 area could be the order of the day. Further support could then be found in the US$148.85 and US$143.50 zones.
However, if the bulls remain dominant, the all-time high in the US$165.70 area awaits first. The market must break through this point for further upwards progress. Should the bulls succeed, the market would record another all-time high. This could be in the US168.92 area.
V.US Daily Chart | Source: ActivTrader
Written by Daniel Schuetz, External Analyst, ActivTrades
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