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TheStreet Open House

5 Big Stocks to Trade This Earnings Season

Stocks in this article: VKOENBPXBRK.BBRK.A

Visa

Another intermediate-term channel up can be seen in shares of payment network giant Visa (V). As with Berkshire Hathaway, shares of Visa have been trending higher since the start of the broad market rally this summer, and also like Berkshire, they've been bouncing within a predictable channel. The biggest difference is that this stock is closer to support.

>>10 High-Conviction Stock Buys From Fund Managers

Momentum adds some extra confidence to this setup -- Visa's RSI line has been trending higher since all the way back in May, and the uptrend is still intact now that shares are correcting in early October. Since momentum is a leading indicator of price, the fact that the uptrend is still intact is a good sign.

If you're looking for a chance to buy Visa (or Berkshire, for that matter), it's important to wait until shares bounce up off of support rather than just waiting for this stock to get near it. That's because all trend lines eventually fail, and when they do, you don't want to be left holding the bag. Waiting for a bounce may cost you a couple of points in missed profits, but it tells you definitively that this stock can catch a bid before you put your money on the line.

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