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JimVanMeerten (56.42)

Visa deserves a look



October 04, 2011 – Comments (0) | RELATED TICKERS: V


When I think of Visa (V) I think of plastic.  Do you all remember the advice given to Dustin Hoffman in the Graduate?  One word: Plastics.  Plastics in the form of credit and debit cards has never been more popular and I think all 4 of the biggest card companies will have record years.  Although Visa and other credit card companies are mirrors of consumer spending the effect is amplified as more and more consumers across the globe turn from cash to plastic to complete a consumer transaction.  Right now might be a good time to buy Visa in light of the recent dip in price as this Barchart hourly trading graph shows over the last month:

Barchart Technical indicators:

1 - Technical sell signals can be signals to buy into stocks that have been on your watchlists if the fundamentals are positive

2 - 8% Barchart technical sell signal

3 - Trend Spotter hold signal that is becoming bullish

4 - Trading below its 20 and 50 day moving averages but still above its 100 day moving averages

5 - Although the stock is 9.53% off its 1 year high that compares favorable to the market as measured by the Value Line Index which is off over 28.03% from its one year high

6 - Relative Strength Index is 43.98%

7 - Barchart computes a technical support level at 83.83

8 - The stock recently traded at 85.22 which is below its 50 day moving average of 86.38

Summary:  Based on the recent market dip and the double digit analysts projections of robust double digit increases in both revenue and earnings I think now is a great time to enter Visa (V) into your portfolio.  Volumes are bound to increase as consumers spend less cash and swipe more plastic.  In the long run, although consumers will be vocal about fees in the end they will just keep swiping away.

Jim Van Meerten is a Marketocracy Master

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