From the highs of July, Visa has lost more than 20%.
To “complicate” the situation, the news released before the opening of the markets on November 17, namely that Amazon wants to ban the use of the famous credit card in the UK.
I … I had bought the previous day.
Hey … this is trading.
However, we are talking about Visa and obviously, part of my strategy is to always enter in brackets, so the news, apart from the emotionality of the moment, could create an additional investment opportunity, should Visa continue its descent up to certain levels.
The company is clearly solid, and from a statistical analysis, I noticed that the pull-backs, over the years, as well as being very rare, are on an average of -18%, so we are at a discount, that is to say, it is the time to buy.
Not to mention that I don’t think Amazon’s decision is final; a deal will be found and when it does, the volatility will be high. (It is, therefore, possible to exploit the momentum by buying call options).
Should the price continue to fall, the entry or accumulation levels in my opinion are as follows:
– $ 190.23: important volumetric level
– $ 179.50: post-covid breakout level, would act as a major resistance.
– 235 $: important volumetric level where the price will surely react
– $ 250: just before the highs, total take profit
DISCLAIMER: I am not a financial advisor nor a CPA. These posts, videos, and any other contents are for educational and entertainment purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.