4 Trade Ideas for Visa: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

Visa, $V, broke out of consolidation in August and then inched past the pre-pandemic high into September. It pulled back to a low in October under the 200 day SMA and then reversed. It made a higher high at the end of December and pulled back under the 200 day SMA, but not by as much as previously, and held at a higher low. Another reversal higher made a higher high in March before dropping back. This time it made another higher low over the 200 day SMA. The strong move Friday confirms the low and suggest more upside with another higher high.

The RSI is rising in the bullish zone from a higher low as well. The MACD is leveling near zero. There is resistance at 216 and 220 then 222.50 and 226. Support lower comes at 212 and 209 then 206. Short interest is low at 1.5%. The stock pays a dividend with an annual yield of 0.60% and has been trading ex-dividend since February 11th. The company is expected to report earnings next on April 28th.

The April options chain shows open interest rise from 190 to a peak at 210 on the put side. On the call side it is strong from 210 to 235, biggest at 220 and 235. The April 30th chain covers the earnings report and has biggest open interest at the 197.50 put, and then spread form 210 to 230 on the call side. The May chain has biggest open interest at the 190 strike and some size at 200 and 210. but it is much bigger at the 215 call, by 10 times. The June chain has open interest spread from 170 to 210 on the put side. For the call side it builds from 195 to 215 and the tails to 255.

Visa, Ticker: $V

Trade Idea 1: Buy the stock on a move over 214 with a stop at 209.

Trade Idea 2: Buy the stock on a move over 214 and add an April 30 Expiry 212.50/207.50 Put Spread ($3.75) while selling the June 230 Call ($3.55).

Trade Idea 3: Buy the April/May 220 Call Calendar (60 cents) and sell the April 197.50 Put (70 cents).

Trade Idea 4: Buy the May 200/215/225 Call Spread Risk Reversal (80 cents).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which heading into the shortened week and the end of the 1st Quarter, sees equity markets showed resilience with a rebound from a mid-week dive.

Elsewhere look for Gold to possibly reverse out of its pullback while Crude Oil consolidates in its digestive move. The US Dollar Index has turned to a short term trend to the upside while US Treasuries bounce in their downtrend. The Shanghai Composite continues to pullback in the uptrend while Emerging Markets look close to a long term breakout retest as they pullback.

The Volatility Index looks to remain low and close to filling the pandemic gap, making the path easier for equity markets to the upside. Their charts look strong on the longer timeframe, but there is a clear ranking emerging with the SPY strongest and moving higher, the IWM with a possible broadening top and the QQQ holding support after a digestive pullback. On the shorter timeframe both the IWM and the QQQ also look weaker than the SPY as they show short term trends lower while the SPY attacks the all-time high. Use this information as you prepare for the coming week and trad’em well.

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.

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