Monitor Visa as a break below 200-day MA could accelerate bear weakness

Visa Inc.’s (NYSE:V) stock showed a lot of strengths around the $195 support. The stock displayed bullish pin bars that pushed prices higher.

However, bulls are seemingly losing control as the stock has come crashing again. We believe you should monitor the stock at the current price and exit or cut the position before it plunges. 

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Fundamentally, Visa ticks the boxes right, but macro uncertainty clouds the outlook. Its second-quarter results came above estimates. Visa CEO Alfred Kelly Jr. attributed the robust quarter results to a global recovery. He further pointed out that growth will continue as global travel recovers. Enablement of new ways to pay was also cited as crucial in the growth trajectory of Visa.

Visa could turn bearish after breaking below $195

Technically, Visa has defended the $195 support for two years. It has always recovered back any time it has broken below the support. The stock has also maintained above the 200-day moving average. However, the recent consolidation above $195 has seen bulls less resistant to moving the stock higher.

Currently, Visa looks increasingly bearish as the price intersects with the 200-day MA. The 50-day MA is also offering resistance above. With the macro-economic uncertainty showing fewer signs of slowing down, Visa could continue sliding.

The bearish weakness will heighten after a break below the 200-day MA. We believe investors should monitor the close of the weekly candlestick to confirm the bearish move.

Summary

Visa is facing bearish pressure as macroeconomic uncertainty heightens. The stock is about to break below the 200-day MA. Investors should monitor the stock to sell before losses heighten.

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