Once known as reliable momentum names, notably Mastercard, the credit card players have recently become a much-maligned group, in the face if menacing regulatory risk out of Washington. However, a look at their charts of late is telling me to keep them on watch.
The weekly chart of Mastercard shows a textbook, multi-year symmetrical triangle near its apex. Note how all weekly moving averages are relatively compressed and are all below price, offering support. I am looking for a break and hold above $260 to validate the bullish move out of the triangle. In a similar vein, Visa’s daily chart shows price breaking out above all moving averages today, out of a descending triangle. Once again, all of those moving averages are now compressed and firmly below price, which usually portends a big move higher.
Both names can run much higher before they even come close to approaching multi-year highs.
____________
____________
If you enjoy the content at iBankCoin, please follow us on Twitter
One word with hyphen …
K-CUP
Beautiful….