Visa is breaking out: it hit a new 3-month high with stronger momentum, recovered above its 50-day average after falling below it in late September, and RSI has improved. If gains above the August high hold, relative strength should keep rising.

Visa is one of those charts that is actually experiencing a breakthrough. It is among the new 3- month highs today, and of course it reappears on our screen for highly rated stocks according to the "Scooter" ranking in " StockCharts".

October was a very strong month . You will notice that many charts in the financial sector saw good jumps upwards in October.

What is interesting about the Visa chart , and certainly the Mastercard chart as well, is that short- term strength has already begun to improve the technical situation. Visa had fallen below its 50- day average at the end of September , but has since recovered and risen above it.

Remember that we talked in a previous chart, when we fall below the 50-day moving average, I like to see a push back above it, preferably with stronger momentum, and perhaps even a larger trading volume.

This may indicate a renewed flow of optimism and a new wave of positive momentum. I like that Visa stock is hitting a new 3- month high with stronger momentum. I like that the Relative Strength Index (RSI) has dropped back to around 40, but with the stock recovering its 50-day moving average, momentum has improved and it is now back in positive territory.

If we can maintain the gains above the high we recorded in August, I think the relative strength will likely improve, and I would say that this is something I haven't seen enough of yet on a Visa chart, which would be very positive, i.e., that the " difference in performance" starts to rise, but I would say that if we can maintain this recent breakout, and if this momentum remains high, then the relative performance is likely to continue to rise.

So , Visa also presents an interesting situation .