Visa released its earnings yesterday after the market closed. While the numbers came in above expectations, the reaction has been negative. Visa closed the regular session down 1%, and pre-market trading shows an additional drop of 2%. That means the market isn’t buying the positive earnings — investors seem unconvinced.
From a technical perspective, the chart confirms the weakness. Visa has been trading within a symmetric triangle pattern marked with blue lines. The price recently failed to break the upper boundary of the triangle and is now breaking the lower one. That lower line is also a key trendline, which makes the move even more significant.
With the pre-market suggesting a sharp drop at the open, this looks like a clean breakout to the downside, signaling a long-term bearish shift. Unless the price quickly reverses and reclaims the trendline, we are looking at a confirmed sell signal.