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CFDs and spread bets are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs and spread bets with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Asset Watch
Wednesday, February 1, 2023, 09:30am
Source: TradingView
Yet, while the fundamentals are headed in the right direction, patience may be warranted in the weeks ahead.
Visa’s 20-day moving average has largely acted as support and resistance since July. And interestingly, the last two times the credit card giant ran away from its 20-day MA alongside high RSIs, pullbacks followed, and reconnections occurred.
The grey arrows and black circles show how overbought conditions often elicit short-term reversals, and the current RSI of 75 is like the 74 from October. Back then, Visa suffered a peak-to-trough pullback of 8.6% before the uptrend continued. Similarly, a lower RSI of 66 in August ended with a peak-to-trough pullback of 7.7% before another short-term rally followed.
As a result, is the third time a charm, or will the upward momentum continue in February?
Sources:
Visa earnings outperformance:
https://www.cnbc.com/2023/01/26/stocks-making-the-biggest-moves-after-hours-intel-visa-hasbro-and-more.html
Visa earnings call:
https://www.fool.com/earnings/call-transcripts/2023/01/26/visa-v-q1-2023-earnings-call-transcript/
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CFDs and Spreadbets are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of Retail investor accounts lose money when trading CFDs and Spread Bets with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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