Visa Inc. (NYSE:V) the payment processing platform company has traded well so far in 2011 and continues to act well. I have discussed Visa Inc. (NYSE:V) before and it is now again getting close to setting up for a high probability trade.
On the weekly chart note the clear uptrend in place since 2009 and narrowing trading range. Stochastics still have room higher. It all looks like the stock is coiled up and ready to spring higher.
The daily chart looks much like the weekly chart in that the potential upside energy is apparent by looking at the uptrend and resistance area near $91. There isn’t a whole lot more to say here, it’s a bullish setup on a solid daily close above $91. Initial stops could be set near $81 and should the stock start moving up a trailing stop may be used. An initial profit target could be set around the $98 area.
As a cautionary note it is worth noting that the broader equity market charts remain broken and the prevailing trend is lower. Down trending markets tend to have a high correlation among stocks and as such even if a chart breakout in Visa Inc. (NYSE:V) were to occur the market could take this stock back down. Manage your stops accordingly.