The blue-chip stock has pulled back to a historically bullish trendline
Blue-chip bank stock Visa Inc (NYSE:V) hit a March 21, all-time high of $290.96 on March 21, but has lost 7.5% over the last three months. V was last seen trading near breakeven at $260.38 while clinging to a fractional year-to-date lead, but a historically bullish signal that has never failed is now flashing on the charts.
Per data from Schaeffer's Senior Quantitative Analyst Rocky White, V is trading within one standard deviation of its 320-day moving average. After the last two times Visa stock pulled back to this trendline after a long stretch above it, it averaged a 6.2% pop over the next month.
The options pits are bearish right now, suggesting a sentiment shift could boost Visa stock. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 10-day put/call volume ratio of 5.75 ranks higher than all annual readings. This indicates puts have been getting picked up at a healthier-than-usual pace in the last 10 weeks.