In today's talk of the day, let's focus on Visa, which had a significant bearish reversal during yesterday's session. This movement is technically critical and indicates a shift in sentiment.
The chart reveals a rectangle pattern marked in blue, representing a consolidation phase. On Monday, the price attempted a breakout to the upside, and this move gained some traction on Tuesday. However, what initially appeared as a bullish breakout has turned into a false breakout, marked in orange.
The false breakout is particularly concerning as the price rapidly returned inside the rectangle, signaling a lack of sustained buying momentum. Moreover, this retreat also broke the mid-term uptrend line marked in black, further solidifying the negative sentiment.
This combination of a false breakout and the break below the uptrend line is a strong sell signal. The technical damage suggests further downside potential, especially as the sentiment remains negative while the price trades below the upper boundary of the rectangle.
The situation is clear: Visa’s sentiment will stay negative unless the price climbs back above the rectangle's upper boundary. Until that happens, the current technical picture leans heavily toward continued selling pressure.