Visa and Mastercard gain traction after announcing their Q4 results

January 29, 2021 13:30

Debit and credit card giants Visa and Mastercard announced their Q4 results yesterday, which exceeded market consensus expectations.

Visa saw an increase in both earnings per share and its income, reaching $1.42 earnings per share and revenue of $5.69 billion, compared to $1.28 per share and revenue of $5.53 billion as expected by analysts.

Since the beginning of the year, Visa has fallen by around 9%, so these positive results may help Visa's price to rebound from its current support level, which is a critical level since it is the coinciding area of its long-term trend line, its 200 session average, and the fibonnaci retracement level of 61.8% from the last bullish momentum after previously bouncing off its trend line at the end of last October, causing it to overcome your previous resistance level and mark a new high at $220.36 per share.

Losing this support level would jeopardize the current uptrend and could lead the price to seek its next support level at the 100% fibonacci retracement level.

Source: Admiral Markets MetaTrader 5. Visa daily chart. Data range: from October 10, 2019 to January 29, 2021. Prepared on January 29, 2021 at 12:00 CET. Keep in mind that past returns do not guarantee future returns.

Price evolution of the last 5 years:

  • 2020: 16.41%
  • 2019: 42.41%
  • 2018: 15.72%
  • 2017: 46.14%
  • 2016: 0.61%

Mastercard also announced its Q4 results, posting earnings per share of $1.64 and revenue of $4.12 billion, versus $1.54 per share and $4.02 billion as expected by market consensus.

If we look at the Mastercard daily chart, we can see that the technical situation of this company is very similar to that of its main competitor Visa, since this year it has lost 11% after bouncing off its green resistance, which has also led to its critical support level in the convergent zone of its 200-session moving average, the uptrend line and the 61.8% fibonnaci level, so these good results could help this stock to make a bullish bounce.

Source: Admiral Markets MetaTrader 5. Mastercard daily chart. Data range: from October 9, 2019 to January 29, 2021. Prepared on January 29, 2021 at 12:10 CET. Keep in mind that past returns do not guarantee future returns.

Price evolution of the last 5 years:

  • 2020: 19.54%
  • 2019: 58.28%
  • 2018: 24.64%
  • 2017: 46.60%
  • 2016: 6.05%

During yesterday's session, both Visa and Mastercard closed positively with increases of 2.51% and 4.14%, so we can expect that today they can continue with these increases, although we must be aware of the pre-opening.

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