By: Scott Redler
Visa (V) is a stock we put on the radar last week as a strong candidate for an oversold bounce. The credit card company had been beaten down due to possible changes in the industry that could dent profitability, but the stock has held up well each time the S&P has tested lows around 1040-1050. We never got stopped out of Visa after our first initial entry. Stops were set at 70, and despite a weak market, they never got hit.
Visa triggered our second buy area above 73.50, and it’s almost at our first resistance of 75-76. This is an area where the more conservative type trader can still feel comfortable getting involved. If market continues to hold lower support this stock could begin to fill the gap in the low 80 area, especially if the legislation is more favorable to credit card companies than first feared.
