Visa Has a head and shoulders formed, if it breaks the neckline, could head down to 190. With earnings next week, it could get super interesting. Puts for February might be a good play.
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I was considering visa puts yesterday but it keep going yesterday for quite a while so I never pulled the trigger.
First thing that made me interested is it’s 3 month performance is negative but has been having a good week saw a potential for a pull back in trend.
3 month
1 week
2nd thing is the simple moving averages
On the left you can see it bounce off the 20 day simple moving average (yellow) and trend back down. You also see the 10 day (red) cross the 20 day (yellow) in the top left before the start of a down trend, this is new as of yesterday.
3rd thing is a lot of bearish news surrounding it.
Overall sell off in growth stocks.
Weakness in the s&p 500.
Announcement of buy now pay later could see visa loose some favor with consumers.
Amazon and visa dispute over payments.
Increased scrutiny from criminal justice.
I really like the chart technical analysis, it’s something I haven’t even considered and is really valuable nice work there.
Lastly earnings coming up I haven’t been able to dig up anything on earning expectations, if anybody can provide anything there that could really make this a slam dunk play.
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Puts for Feb 190 or 180 were up 1000%+ today. Congrats to anyone who took them.
Thanks for the initial post and research. I didn’t expect the downwards movement to occur so quickly pre-earnings. Do you think there is still room for entry on Feb puts at this point?
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Congrats on the play was a great call out, congrats to everyone who played.
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Now that the H&S’s is out of the way, I believe Visa has found a bottom, the clouds are starting to flatten. Visa has been following the spy trend perfectly every day. I can see this start to move it’s way back up, BUT, earnings is tomorrow. Last earnings Visa took a beating, even though it beat earnings. The expected this time is 1.7… which is better than last Quarter.
today’s movement has shown Visa hit the bottom. But, let’s see what the earnings report has in store.