Above is a chart of Visa, as can be seen, V has been descending albeit slowly for the last 2 months or so. (could this be consolidation for another leg up, who knows?). Anyways, V is now against the descending line. We are hoping it will break it and we could get a nice quick 10-15% long trade on it. Our reasons, are basically, bullish divergences on the MACD and a beautiful HnS on the chaikin. This hns on the derived chart, can be thought of the product of noise reduction on the primary price chart. This is strictly a fun trade for us as of now, in the league of our past few trades DENN & CPSL.
On a side note, we tested our hypothesis on the UNG trade and bought another sizeable portion, on a break of the bottom today. We were not disappointed and are nicely in the money on this. We want confirmation though and tomorrow is the big NatGas inventory report. But we still favor a sizeable bounce in UNG. Lets see!
3 comments:
Visa reported solid earnings tonight. You may get a gap up tomorrow.
Up almost $2 in aftermarket
V is still up against the descending trendline. We would like to see some follow through action/confirmation (decisive break above the trendline) before dipping our toe in.
Post a Comment