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Visa Inc (US: V) downtrend has been ongoing after it broke off the larger rising wedge which starts from 27th March 2020 to 26th July 2021. Despite the ongoing downtrend, Visa’s technical indicate that there is a short term rebound to test the higher gap resistance zone at US$225.26-US$231.12:

  1. Visa strong gap below on Wednesday was well supported after a hammer was seen rebounding at support zone 1 at US$200.47-US$204.36. To add on, the support zone 1 lower boundary is 161.8% extension level of the previous head and shoulder formation.
  2. The hammer was also seen rebounding from 1:1 ratio of the Fibonacci expansion level at US$199.17 as well as the lower boundary of the Bollinger band.
  3. Should RSI have a uptick when the market open for trading, there will be a potential bullish divergence.

*Expected timeline of the trade is 15 weeks from the date of report issuance.

*The downside trend remains and judging from the price structure, there will be one more inverse N wave down and likely support zone 2 will be the main rebound zone.

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CHART LEGEND

Bollinger Band

Red dotted line = Upper Bollinger band

Blue dotted line = 20 Periods MA

Green dotted line = Lower Bollinger band