Doji Candlestick Menaces Visa

2022년 8월 2일

Visa has trended steadily lower for the past year, and now some patterns may suggest that another peak has formed.

The first item on today’s chart is the attempted rally on July 27 following better-than-expected earnings. It looked like V could stay green for about half the day, but then it knifed down on heavy volume. The resulting higher high and lower low produced not only a large outside day but also a doji candlestick. That’s a potential bearish reversal pattern. (In addition, it left a hanging man candlestick on the weekly chart.)

Next, the potentially bearish price action occurred near a declining trendline that began in February.

Third, MACD is nearing a potential bearish crossover.

Finally, the 200-day simple moving average (SMA) has been falling. Also notice how V has struggled to remain above it since gapping downward in late October. Has the longer-term trend turned lower?

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