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Is Visa setting up for a fresh rally leg?

Shares of VISA have been trading in a rather narrow range since early June. After the release of their impressive Q4 results on 10/24, which included a solid forecast,, the stock has been moving steadily higher. Most recently upside volume has picked up dramatically. We believe V is setting up for an upside breakout and consider the stock a fairly low risk buy near current levels.

On the upside a close above the $185.00 area will clear the November and initial December highs. Once past V will have a clear shot at new all time highs. The stock is far the overbought levels reached this past summer indicating considerable room for upside.

On the downside a close back below $179.00 would violate last week’s low. This would indicate more sideways action is ahead before a fresh rally leg can begin.

At time of publication we do not have a position in V.