Visa

The exact same setup is forming in Visa ( V) right now, but the payment network is closer to being buyable from here. Like BHP, Visa has been rallying hard in an uptrending channel since June, climbing more than 28% since the first trading day of that month. Now, as Visa comes down to test support for a ninth time, it makes sense to buy the bounce.

The fact that Visa has made so many bounces off of support already is a good sign. It proves that this stock can easily catch a bid at or below that trendline support level and that the rally hasn't just been a fluke. That doesn't change the fact that it's critical to wait for shares to actually bounce off of that support level before jumping onboard -- we still need to see that buyers in Visa are active before it makes sense to put real cash on this trade.

The 50-day moving average has acted as a good proxy for support over the last several months. That makes it a logical spot to place a stop below...

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