Visa (V) Breakout From Bullish Triangle

Posted By Tate Dwinnell |  Subscribe in a reader | Comment 8

I’ve mentioned in the new IPO Community forum recently (which you can sign up for here if you haven’t), that the best way to trade new IPO’s is to wait.  You give the stock at least 2 weeks to play out and let the dust settle on the volatility.  It often doesn’t take long for the best IPO’s to break out from a bullish pattern.. often a short flat base or a triangle formation.  Today in Visa (V), after just 2 weeks of trading, the stock broke out from a bullish triangle formation pattern with a tick up in volume.  So now the lines in the sand are drawn for Visa.  Support at 62.50, with the next level of resistance at the highs of 69.

Here’s a look at the breakout from the triangle formation on the daily.

visaipo_trianglebreakout

I really didn’t get interested in trading Visa (V) for much of the day.  Although the price action was decent in Visa throughout the day, volume levels didn’t reveal that institutions were doing much buying until the last hour of trading when volume levels picked up substantially.  Granted, there was some big selling going on as well but ultimately bulls won out with a nice breakout today.  Considering support is nearby at 62.50, in my opinion it’s a good high reward, lower risk trade.

visaipo_intraday

Disclaimer:  This is not a recommend to buy or sell, but an idea for further research.  Trade according to your own tolerance for risk.  I do own a position in Visa (V).

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Comments on Visa (V) Breakout From Bullish Triangle »

April 3, 2008

dave @ 6:24 pm

I bought MA at 50 sold at 64 rebought it back at 94 sold at 175, bought it back at 194 and holding. I feel that V is going to be the same way.

Tate Dwinnell @ 6:27 pm

Nice on MA Dave.. looks like that may break soon too.

Andy @ 8:41 pm

Nice article Tate. I have shares of VISA for long term play because of what MA has done. I’m on the same line of thinking as Dave also.

April 4, 2008

Amy @ 10:09 am

I did the same thing with MA, only I purchased the first group near closing of the IPO ($46). I cannot tell you how many times I bought and sold, but I made about $250,000 in profits. I have now begun a new relationship (lol) with V, starting min 1 of the IPO (seconary offering, I don’t pay brokers ever). I think about the what ifs had I just left my money in MA instead of getting in and out so much ( I would have $500,000 in profits). I am in for the long term play this time, several years, maybe even 10 or 20. Time will tell…

STAN @ 10:57 am

According to a report I saw on 04/03′s trading , there was a “Last Trade Volume” of 3,978,900 shares!!!!.If my arithematic is correct that’s in the neighborhood of $250 million dollars. Someone knows more than I but if he’s in it for that kind of bet, I’ve got to hang around to see the bidding. Can anyone expound on that trade number? Thanks. Stan

Tate Dwinnell @ 5:11 pm

I’d be careful and not assume that V will have the same kind of run that MA did. Remember, there was a fraction of the hype with MA than with V. Still like V for the long haul, but don’t think we’ll see the same kind of returns.

April 5, 2008

cbalascio @ 8:11 am

visa will be big, 4 times the company ma is visa on every debit card world wide.300 to 400 in two years.

[...] I’ve been discussing for awhile now, first posting about the strategy in 2006 and then again during the Visa IPO in 2008.  It’s a time tested strategy that works very well, taking the emotion out of an IPO [...]

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