Bull & Bear: Visa Inc. (V)

Shares of Visa Inc. V are trading higher on the session by 0.80%, at $80.50. With shares recently regaining the $80.00 level, you have to wonder where shares are heading next… Bulls: Bulls will note that shares are fast approaching the key $80.90 support/resistance level and that, if they trade up through it, Visa could shoot higher. While there exists a small resistance level at $83.90, the medium-term price target would most likely be $87.00. Bulls will note that the 20-day, 50-day, and 200-day moving averages are now all upward-trending, indicating that shares are under fast accumulation. Bulls will also note that Visa recently reaffirmed its FY 2011 outlook. A bullish trader could buy the June $80.00 call for $2.74 and sell the June $85/75 strangle for a net credit of $1.64. Bears: Bears will note that shares of Visa are trading well above the 50-day and 200-day moving averages, which should put technical selling pressure on the name. Along these same lines, the Stochastics point to an overbought stock as well. Bears will also note that the $80.90 level has been major resistance over the past year, with shares typically cratering lower after tagging the level. Last time Visa touched $80.90, it plummeted down to nearly $66.00. A bearish trader could consider buying the September $80/70 put spread for a net debit of $3.30. Visa Inc., incorporated in May 2007, is a global payments technology company that connects consumers, businesses, banks and governments in more than 200 countries and territories, enabling them to use digital currency instead of cash and checks.