Date: 09 May 2019

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

V.US Daily Chart | Source: ActivTrader

 

Written by Daniel Schuetz, External Analyst, ActivTrades

*The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication. All information has been prepared by ActivTrades PLC (“AT”). The information does not contain a record of AT’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of futures performance. AT provides an execution-only service. Consequently, any person acting on the information provided.