Don't Ignore This Chart!

This DOW stock is pushing to new relative highs and rotates back into the leading quadrant on the Relative Rotation Graph


Visa is showing up, just, inside the leading quadrant on the Relative Rotation Graph vs $INDU above. These images are zoomed in from the RRG holding all the 30 DJ Industrials stocks (benchmark $INDU).

The tail in the chart on the left above shows 30 weeks of rotation and as you can see the week-to-week observations are all close together (the white dots on the tail) causing a relatively short tail compared with other stocks on the plot.

Short distances on the tail indicate low strength(momentum) and as the rotation was pointing downward and in(to) the weakening quadrant that was a good sign (less negative).

Over the past weeks, V has started to curl back up again, without crossing over into the lagging quadrant, and is now crossing back into leading. This makes it one of the stocks in this universe that is worthwhile keeping an eye on.

Especially as Visa also on the daily version of the RRG (chart on the right above) just rotated back into leading after a short stint through weakening and then back into leading. 

Looking at the price chart of Visa in combination with relative strength and RRG-Lines against $INDU we see a triangle like formation in the relative strength line which just broke away to the upside. This means new highs for Visa against $INDU.

The JdK RS-Momentum line crossed back above 100 recently and is now supporting a further relative uptrend as indicated by the JdK RS-Ratio above 100.

The price chart shows a reversal back into the sideways range between $132-$142/45 basically negating the downward break and putting support back around $132.

Not a ton of potential in price (yet) but very strong on a relative basis.

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Julius de Kempenaer | RRG Research
RRG, Relative Rotation Graphs, JdK RS-Ratio, and JdK RS-Momentum are registered TradeMarks ®; of RRG Research

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Julius de Kempenaer
About the author: is the creator of Relative Rotation Graphs™. This unique method to visualize relative strength within a universe of securities was first launched on Bloomberg professional services terminals in January of 2011 and was released on in July of 2014. After graduating from the Dutch Royal Military Academy, Julius served in the Dutch Air Force in multiple officer ranks. He retired from the military as a captain in 1990 to enter the financial industry as a portfolio manager for Equity & Law (now part of AXA Investment Managers). Learn More
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