Visa (V) – [ Nearing The Bottom? Time To Get In?

Visa don’t really need much introduction as most of us would probably own a credit card/debit card under the payment service of Visa or Mastercard. It is considered an Oligopoly as these two are the biggest in the payment technology space. Visa being the biggest. If you actually remember this picture and commercial then you’re probably from my era. Haha!

As the world adopts towards the Global electronic payments, the demand for Visa and Mastercard will continue to cement their growth and riding through this trend. The global digital payment market is estimated to be worth US$5 trillion. Remember that Visa is a not credit card company.

Visa has a Wide economic moat as the other competitor is Mastercard while American Express is far back and not really considered a big threat.

Lets take a look at the chart to see where Visa is now and is an entry on the cards?

Chart source: Poems2.0 18th Nov 2021

We saw Visa having a big gap down due to news that Amazon UK customers will no longer be able to pay with credit cards issued by Visa beginning next year! What a bummer! To rub salt to the wound , Buffet has reduced his stake in Visa and Mastercard too ! But is this all doom and gloom for Visa? Or does this spell an opportunity to pick up some Visa at a lower price?

From the charts, the round number $200 acts as a psychological support, further support at around $196 then $192 gives investors a good chance to scale into Visa. An entry of round $200-205 might be an area to consider for an investor first tranche into Visa.

There is potential for Visa as world economy continues to recover and people adapting digital payment. Remember to clearly define your investment horizon as this is important in your investment journey.

Looking for a good entry for Visa ,are you?

Yours

Humbly

Kelwin&roy

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