Trading Idea - Is Visa close to Resistance?

Published on Friday, 20 January 2012 09:20 Written by Danny Miller

New York, January 20th (TradersHuddle.com) - Shares of Visa Inc. (NYSE:V) are trading very close to calculated resistance at $103.40 with the current price action closing at just $102.37 placing the stock near levels that make it difficult to buy.

Visa Inc. (NYSE:V) is a retail electronic payments network operator. The company manages global financial services and offers global commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses and government entities.

Visa's current stock range is defined by current calculated support defined at $88.78 and by the resistance level at $103.40, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Visa, as the stock is well above support, however, as the stock pulls back towards $88.78 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $103.40 then traders will get an opportunity to enter Visa stock by establishing a position as the stock moves to a higher range.