Visa Falls 3.00% as Death Cross and Bearish Indicators Signal Deepening Downtrend
Visa (V) fell 3.00% in the most recent session, closing at $321.83. This decline aligns with bearish candlestick patterns, including a long lower shadow and a breakdown below key support levels previously identified at $323.51 (January 29 low) and $321.6 (January 30 low). The 50-day, 100-day, and 200-day moving averages (approximately $334, $339, and $344, respectively) suggest a bearish trend, with the short-term MA (50-day) crossing below the long-term MA (200-day) in a death cross formation. The MACD histogram has turned negative, and the KDJ indicator shows %K and %D lines dipping below 20, indicating oversold conditions. However, a bearish divergence emerges as RSI (calculated at ~28) remains below 30, signaling oversold territory, while price continues to decline, suggesting potential for a false rebound. Bollinger Bands have widened following a period of contraction in early January, with price testing the lower band, which may either trigger a bounce or confirm a breakdown. Volume spiked to 11.2 million shares, validating the recent bearish move, though declining volume in subsequent sessions could hint at waning momentum. Fibonacci retracement levels between the 2025 high of $375.51 and 2025 low of $313.27 highlight critical support at $321.6 (38.2% retracement) and resistance at $331.8 (January 29 high). Confluence is evident at the 38.2% Fibonacci level and RSI oversold threshold, suggesting a potential short-term rebound.
Moving averages and Bollinger Bands both confirm heightened volatility and a bearish bias, while the KDJ and RSI concur on oversold conditions. However, a divergence exists between the bearish price action and the potential for a rebound at key Fibonacci support. Traders should monitor volume sustainability and whether the 50-day MA ($334) reclaims control to signal a trend reversal.
The MACD crossover below the signal line and the death cross in moving averages reinforce the bearish outlook, but the RSI's oversold reading (~28) introduces uncertainty about a near-term rebound. Bollinger Bands' expansion suggests volatility is pricing in the decline, yet volume remains elevated, indicating conviction in the downward move. A break below $321.6 (38.2% Fibonacci) would target $313.27 (61.8% Fibonacci), while a close above $331.8 could trigger a retest of the 50-day MA as a potential reversal point. Probabilistically, the near-term bias remains bearish, but confluence at $321.6 offers a tactical entry for short-term countertrend plays.
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