So far, August has been as advertised.
Typically August is a low volume, low success trading period for traders, especially traders looking to go Long.
And it’s been all of that.
But, of course, this lousy period shall pass.
And, as we’ve mentioned previously, the stocks that hold up during a fallow period are the ones that thrive when the bullishness comes back.
Visa (V) fits that profile.
It’s been steadily rising since it bottomed out in September of last year, and now it’s consolidating in a tight range.
Plus, through all the bearishness of the past year and half, V is actually very close to an all-time high.
If it breaks its sideways channel and goes above $245.37, it could go on a big run.
We’ll keep an eye on it.
— Scott Welsh
P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The chart above uses weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45.