Visa - Earnings out tomorrow and a little overbought right now, time for a pullback or new all-time highs?

Visa’s stock is currently trading at around $272.63 a share. Looking at the weekly timeframe, we can see it continues to rally with the trendline support intact. Its share price would need to fall by roughly 7% for the focus to shift towards trendline support, which would also mean falling back into the $250-$260 area. From a technical standpoint, the indicators do suggest that the stock is a little overbought right now. The MACD is at a similar level to what it was back in July 2021, which led to the decline all the way through to 2022 and beyond. That was a 29% fall lasting around 15 months, but the global economy has been showing signs of improvement so such falls should not occur any time soon. However, let’s reiterate on the MACD, it is at overbought levels and so is the RSI. The RSI is reading 74 right now and the last time it was at this level was back in February of 2020, just before Covid. This does not necessarily mean that the price of this stock will fall, but it certainly creates caution going into the earnings. If the earnings are less than what investors and analysts expect, alongside with overbought signal, a healthy retracement would then be rather likely. If the earnings outcome is above expectations then the next target for investors would be the $280 mark.