Welcome to Extreme Investor Network, where we provide unique insights and analysis to help you identify emerging investment opportunities. Today, we’ll be diving into the financial sector, which has been the top performer in October.
One particular stock that has caught our attention is Visa (V), a payment processor that has been showing signs of strength. The chart of Visa reveals a “cup and handle” pattern, a bullish formation that indicates a period of consolidation before a potential breakout. The key resistance level of $290 has been tested multiple times since March 2024, and this week, Visa finally broke above it with an earnings-fueled upside gap.
As long as Visa remains above the $290 level, the daily chart looks positive, with the potential for further gains. The weekly chart also supports a bullish outlook, with the RSI indicating strong momentum and the PPO generating a buy signal in late August 2024.
Looking back at previous breakout patterns for Visa, we can see a history of significant gains following similar moves. In November 2023, Visa gained an additional 18% after a big base breakout, suggesting the potential for further upside in the coming months.
It’s important to note that all opinions expressed on Extreme Investor Network are solely for informational purposes and do not constitute financial, investment, tax, or legal advice. Before making any financial decisions, we recommend seeking advice from your own financial or investment advisor.
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