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Seems like each day the market moves higher Visa decides to take a break and consolidate, on the same token each day the market decides to take a breather Visa takes two more steps forward. Visa currently has a 52 week range of 55.00 to 69.00. Visa is currently trading with a market cap just shy of $53 billion, while MA is holding steady just shy of $31 billion.

The following is a two year chart of MasterCard (MA). I’d expect to see a similar pattern in Visa over the next year. With a 52 week high break (or better yet $70 dollar break on Visa) buyers will enter and we should see a steady rise towards the next physiological target of $100. Thinking of buying? If you’ve been consistently debating buying but have yet to pull the trigger, it’s not a bad idea to watch for dips for your first purchase. If you are only looking for a quick trade, I’d wait for the 52 week break out. Support appears to be forming in the $65 to $66 range but could consolidate in this area for quite some time. I’d be patient, buy half my position on dips as close to the $65 level as possible and wait for the $70 dollar break to add. Once it consolidates in this trading range we should see the break (and everyone will start talking about next psychological target of $100). On the flip side, if it doesn’t break higher, no real harm done with only half your position purchased.

It’s interesting to note that while the overall market’s lost nearly 30% year to date before its recent reversal, MasterCard had been and still is trading within $1 to $2 dollars off it’s 52 week high. 

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Tags: Breakouts, MA, V

This entry was posted on Tuesday, April 8th, 2008 at 10:09 pm and is filed under Stocks. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.