"Water shapes its course according to the nature of the ground over which it flows; the soldier works out his victory in relation to the foe whom he is facing. Therefore, just as water retains no constant shape, so in warfare there are no constant conditions."
-
Sun Tzu

Tuesday, February 19, 2013

Swing Trade Setup: Visa

Visa (and actually Mastercard as well) is in a great technical position for a swing trade on the long side this week. V has been in a stable uptrend for the last two years and recently consolidated gains in an orderly fashion. Last week, V successfully tested important support, creating a "Failure Test" setup on the daily chart. These tests often create short-term buying pressure and it can be rewarding to join the crowd until the stock records new highs. This is a very clean swing pattern and I plan to enter the trade later today.

 V: Daily Weekly Chart

V: Daily Chart