Visa Stock Price Forecast: Approved by China to Prepare Domestic Clearing Business, Shares Expected to Break $400

TradingKey - As of the close on October 12 Eastern Time, Visa (V) stock rose 0.99% to $389.27, hitting an intraday high of $391.81, recording eight consecutive trading days of gains and setting another all-time high. Notably, Visa announced today that it received approval from the People's Bank of China to officially begin preparations for establishing a domestic bank card clearing institution in China, advancing a new regulatory process for its entry into China's domestic payment clearing market, which may continue to support further stock price gains.

Visa stated that the People's Bank of China has approved its "preparatory application," allowing the company to officially begin establishing a domestic bank card clearing institution. It should be noted that this approval does not mean Visa has obtained a final business license, nor does it imply that the company can immediately process domestic bank card transactions in China; it still needs to complete preparations and pass relevant regulatory procedures. Visa has not yet announced a specific timeline for officially launching its domestic operations.

If it subsequently obtains a formal operating license, Visa's business scope will extend from its current focus on cross-border payments to domestic bank card transaction clearing in China. Data shows that China currently has over 10.27 billion bank cards in circulation, including approximately 677 million credit and hybrid cards, indicating a vast domestic clearing market. Previously, American Express and Mastercard had already advanced their domestic bank card clearing operations in China.

Visa daily stock price chart, Source: TradingView

Looking at the daily chart of Visa's stock price, the stock has gained for eight consecutive trading days recently, reflecting strong bullish sentiment in the market. In terms of technical indicators, the 14-day RSI has climbed to 70.1, entering traditionally defined overbought territory; the MACD stands at around 2.83 and remains positive, indicating that recent upward momentum has not yet weakened, though short-term price volatility may widen following the continuous gains.

To the upside, attention should first be paid to the latest high of $391.81. If broken and sustained above, the next resistance lies at the $400 psychological level. If this level is breached forcefully, the next upside target will extend to around $418. To the downside, the first support level is around $384–$385, followed by $378–$380 further below.