COF started doing the dreaded H&s pattern when it had a retracement @68. Both shoulders are located @73 and the head @78.50. on February 18th, it closed with an evening star at the 0.76 Fibonacci retracement level that if confirmed by lower lows and lower highs from the next bar is a bearish sign. The MACD Histogram is forming a Peak and the Stochastics are at the Overbought level. This suggests a weakening momentum If this fails to do a higher high on 19th, and theory matches reality then we can expect the price to fall below the neckline targeting at 57.
Comments
timwest
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Did you stop out? Or are you still on this short position? The rest of the banks look very toppy. This one is a stalwart though in the sector as it lends to low-end of the credit spectrum on the retail side, which is very different than the majors. Sometimes these squeeze rallies are good entry points if it drops under the previous day's low, which it did today. Just checking in. Tim