Check Your Wallet For Your Next Trade

• Posted by Greg Harmon
• on February 21st, 2013

Pull out your wallet and you will likely find at least one of two stocks that are holding up very well in this 2 day pullback. What’s more both have been consolidating for a while prior to the pullback. Now they stand out as having strong Relative Strength (not Relative Strength Index) to the Market, other Financials and within the Credit Card sector. Take a look.

Mastercard, $MA

Mastercard, $MA, has been consolidating since it gapped higher after the first of the year. In a tight range between 513 and 526 for the most part, it Thursday touched the 50 day Simple Moving Average (SMA) before moving higher. The Relative Strength Index (RSI) is holding in bullish territory and the Moving Average Convergence Divergence indicator (MACD) is slowing its descent. A move back higher in the market, financials or just this name could trigger the breakout higher. Over 526 it has a Measured Move higher to 566.

Visa, $V

Visa, $V, is very similar, trading between 154.66 and 160. It also has a bullish RSI and a MACD histogram that is improving and found support at the 50 day SMA Thursday. This one has a Measured Move to 168 on a move over 160.

Keep these two names on your radar as you prepare a new buy list for the market turn.

Join the Dragonfly Capital Views Premium Membership

Sign up here to get deeper analysis and nearly 50 trade ideas every week.

Dragonfly Capital Views Performance Through February 2013 Expiry

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus