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Shares of Visa (V) have been under pressure since slipping below major support earlier this month. The stock has spent the bulk of the last two weeks below its 200-day moving average as downside momentum began to take control. Yesterday, ahead of the company's earnings report, shares fell nearly 2.25% on accelerating trade.

Without a very positive response to the Visa's latest results, a deeper selloff now appears much more likely. For Visa bulls, a stand-aside posture over the near term may prove wise.

Visa's sharp pullback in January drove the stock down to its 200-day moving average toward the end of the second week of the month. Visa slid right through this key support area with little hesitation, certainly not a sign of strength by any means. The stock began to attract relatively heavy selling pressure once below the 200-day, but further losses were well contained. Following yesterday's weak action, though, limited downside appears unlikely. Investors should expect another leg lower before a significant support zone is reached.

As a new down leg develops, Visa bulls should keep a close eye on the $66-to-$67 area. This solid support zone includes the stock's September, June and July lows. In both July and late September, this zone marked significant lows and would be expected to attract buying interest during another test. If Visa fails here, a much deeper selloff will likely be on the way. A close below $65 would be a warning sign that investors have lost confidence in the stock. 

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Disclosure: This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.