Capital One has spent months near late-winter highs, and some traders may think it’s ready for the wild blue yonder.
The first pattern on today’s chart is the jump to new record highs on July 23 after quarterly results beat estimates. Prices got sucked lower because momentum (as measured by MACD) was bearish at the time. However the oscillator is now turning higher.
Second, the financial stock has cleared a falling trendline and now seems to be bouncing at it.
Third, prices have tracked the rising 50-day simple moving average. That may be consistent with an intermediate-term uptrend.
Next, the 8-day exponential moving average (EMA) is also above the 21-day EMA. That may be consistent with a short-term uptrend.
Finally, COF made a weekly closing high of $203.71 on January 31. It stalled at that level in mid-May and mid-June. Prices then pulled back to hold that level at the beginning of this month. Has old resistance become new support?
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Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
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TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
The first pattern on today’s chart is the jump to new record highs on July 23 after quarterly results beat estimates. Prices got sucked lower because momentum (as measured by MACD) was bearish at the time. However the oscillator is now turning higher.
Second, the financial stock has cleared a falling trendline and now seems to be bouncing at it.
Third, prices have tracked the rising 50-day simple moving average. That may be consistent with an intermediate-term uptrend.
Next, the 8-day exponential moving average (EMA) is also above the 21-day EMA. That may be consistent with a short-term uptrend.
Finally, COF made a weekly closing high of $203.71 on January 31. It stalled at that level in mid-May and mid-June. Prices then pulled back to hold that level at the beginning of this month. Has old resistance become new support?
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.