The trend channel is also a nice tool to use as a reference point. Price action in July of 2011 was the start of this huge bull-run. Depending on how your trend lines are drawn, Visa has respected the upper and lower bounds many of times. Days of note have a white oval. These days have the same or a similar pattern to what was presented yesterday. For the most part, each of these situations resulted in lower prices in the short term.
It is also interesting to note that yesterday’s volume was 30% above the 50-day average volume. Additionally, on balance volume failed to confirm a new ATH too. A target could be the middle of the bull channel displayed below, perhaps about $150 in the short term. Next week’s weekly options in combination with the regular January monthly options are pricing the $150 put calendar at $0.34, if one was inclined to get bearish next week. Other ‘options’ include buying put verticals or anything with negative deltas.
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