Visa's Strength Amid Market Decline

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STOCK MARKET,VISA,TECHNICAL ANALYSIS

This article analyzes Visa's stock performance, highlighting its resilience during a recent market downturn. Using technical indicators like relative strength and moving averages, the author demonstrates Visa's outperformance compared to the broader market and its financial sector peers. The analysis also covers long-term trends and specific levels to watch in the coming days and weeks.

When the broader market experiences a sudden decline, I've learned to focus on stocks that are holding up as conditions appear to deteriorate around them. With this week's post-Fed drop, I'm immediately drawn to stocks like Visa (V) which remain in primary uptrends and improving relative strength. Let's focus first on how Visa has performed relative to its peers.

Here we are showing Visa on a daily basis, the relative performance versus the S&P 500, and also Visa compared to the financial sector. Both of the relative lines have made new three-month highs this week, demonstrating that V has outperformed both its sector as well as the broader market in Q4. In the top panel, we can see that Visa is currently trending higher above two upward-sloping moving averages, a configuration that is only featured on about 20% of the S&P 500 member charts this week. V certainly seems to be demonstrating signs of strength while many individual stocks are showing clear signs of weakness. Looking at the longer time frame, we can see a weekly uptrend that really started off the October 2022 low. Pullbacks in late 2023 and mid-2024 pulled the price down to the 40-week moving average. In both instances, we saw the weekly RSI bottom out around the 40 level, followed soon after by a PPO buy signal. So while Visa has certainly demonstrated short-term strength on the daily chart, the weekly chart shows that this is a long-term growth story resuming its long-term uptrend. While we'll keep a watchful eye on the weekly PPO indicator for a potential sell signal, for now this is a chart in a confirmed long-term uptrend phase. Back to the daily time frame, let's review some specific levels to watch in the days and weeks to come. In early November, Visa completed a cup-and-handle pattern with the breakout above $290 providing the final confirmation. We then saw a post-election gap higher, pushing V above $300 for the first tim

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