After A Lengthy Decline, Visa Appears Ready To Move Higher

Visa (V) topped in July 2021 and had been in a steady down channel for roughly 15 months.

But technical indications suggest that V reversed its downtrend and is now trending higher. Earnings are due out in just over two weeks, but its absolute and relative strength point to a solid report and a continuing advance. Check out V's 3-year weekly chart:

Enter Visa (V):

The weekly PPO has cleared centerline resistance and is poised for further strength. Also, when a down channel breaks, it's generally a good sign to see a backtest and another push higher. That's what we've seen from V. But the key for me is definitely the relative strength here. V is now clearly leading the computer services industry and the group is actually outperforming the S&P 500. Investing in leading stocks in leading industry groups is the best way to outperform the benchmark S&P 500.

Happy Trading! Tom Bowley Chief Market Strategist EarningsBeats.com Better Timing. Better Trades.