Visa and Mastercard gain traction after announcing their Q4 results
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.
With the Admiral Markets Trade.MT5 account, you can trade Contracts for Differences (CFDs) of Mastercard and more than 3000 stocks! CFDs allow traders to try to profit from the bull and bear markets, as well as the use of leverage. Click on the following banner to open an account today:
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
- Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
- With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
- The Analysis is prepared by an independent analyst, Roberto Rojas (analyst), (hereinafter “Author”) based on their personal estimations.
- Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
- Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.
