Buy This Alternative Financial Stock’s Breakout

by Sam Collins | December 17, 2013 1:15 am

Visa (V[1]) — This credit card company has the largest network of retail electronic payments in the world. Credit Suisse analysts have an “outperform” rating on the stock.

It is also a favorite of InvestorPlace Editor Jeff Reeves who wrote for MarketWatch[2] about owning alternative financial stocks as opposed to traditional banks. He said: “So what better way to tap into this cashless craze than with a company like Visa, who takes a tiny fee for each transaction? More transactions mean more profits — which is why Visa’s stock is up 35% in 2013, and up about 220% from its 2008 IPO.”

Technically speaking, shares broke to a record closing high on Friday and followed through with a small gain on Monday and another new closing high, clearing resistance at the October peak. This breakout follows a long series of bullish patterns dating back to its bottom in July 2011. At that time it established a support line, which has never given way in four years.

Buy Visa for a trade to $220 or as a long-term position in the financial services group.

V Chart
Click to Enlarge

Chart Key[3]

P.S. – Traders looking to Serge Berger’s free Beat the Bell[4] service every morning will be putting themselves in capable hands.

Serge has worked for InvestorPlace for years now, and has filled in for me on the rare occasion I take a few days off. Every time I return, I see plenty of reader compliments about Serge’s work.

Serge’s technique involves swing trades in stocks and ETFs that last anywhere from two days to four weeks. He is frequently successful in capturing high-probability trades that are set up at confluence zones of support/resistance using candlesticks as his charting method.

And Serge’s advice isn’t just one-time, one-way. Win or lose, he frequently revisits ideas after the fact to see what can be learned and what new trades can be made. More importantly, Serge connects with his readers, frequently answering questions and fielding some tough ones with aplomb.

I have no doubt that traders will be well-served by Beat the Bell[4] and Serge’s daily flow of ideas.

– Sam Collins, InvestorPlace Chief Technical Analyst

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