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Visa Inc. Set For Key Break In The Next Couple Weeks

Visa Inc. (NYSE:V) has been consolidating for the last three months inside a triangular pattern seen on the chart below. Technically, the triangle will come to a point in the next week or so.  At this point, the stock will be forced to break out or break down.  The general consensus has the odds based on technical analysis favoring the downside slightly. Should the stock break down, it will likely head to the double bottom level of $68.00.  If by chance the stock breaks out, Visa will head north to the 200 moving average and double top level at $82.00.

MasterCard Incorporated (NYSE:MA) also has a consolidation pattern on the daily chart. It is more sloppy than the Visa chart but still needs to be watched.  Visa and MasterCard generally trade together. If one breaks down, it is highly likely the other will as well. The same thing goes for the upside, should one break out, the other will as well.

Gareth Soloway
Chief Market Strategist