Visa Inc. (V/NYSE/S&P500)

Industry: credit services

Fundamental analysis

Visa published the positive last quarter report, showed the growth of the financial results above the markets’ expectation. In the 1 quarter 2017 the income of the company grew by 23% YoY to 4.5 billion USD, and the main growth driver is the increase of the transaction volume by 42%. The ETA is 0.86 USD, which is by 21% higher than in same period of the last year. Moreover, Visa announced the start of the new payback action program, valued by more than 5 billion USD.

Despite strong financial quarter indicators, Visa announced positive forecasts of the expansion on the Asian market. The most promising is the China market, where Visa is waiting for the credit services license.

During the last week Visa stocks lowered by 0.42% against the lowering of S&P 500 by 1.01%.

The comparative analysis between the indicators of the company and its competitors suggest the neutrality of its share prices.

Key levels

After the significant fall from the beginning of the week the correctional movement can develop in the nearest future. Yesterday the issuer kept the significant demand zone of 91.40-91.60. The growth of MACD confirms the development of the “bullish” moods. The key trading range is 91.60-92.00 at the moment. Find entering points to open long positions.

Support levels: 91.60.

Resistance levels: 92.00, 92.60, 93.60.

Trading scenario

If the price is set above the resistance level of 92.00, buy the stocks. Stop loss is at 91.50. Fix the potential profit partially at the levels of 92.50, 93.00, 93.50.

However the further lowering of the stocks in not excluded. If the price is set below the demand zone of 91.40-91.60, sell the stocks. Stop loss is at 91.90. The price can move to 90.50-90.00.

Implementation period: 2-3 days.