Ascending Triangle Breakout & Re-test

NYSE:COF   Capital One Financial Corporation
COF recently broke out from an ascending triangle pattern and established a new higher high. So what's next?

I expect the price action to return to the previous resistance zone (highlighted in yellow) of the upper ascending triangle and find this zone as support, in turn establishing a new higher low. Long lower wicks on the 4H and D candles as the price enters this key area is a signal of bullish support, thus complimenting my thesis. I'll also be looking to achieve a fib retracement between 50 and 38 in addition to the 20, 60 and 120 MAs in sequence. The ultimate entry indicator for this set-up is for the price to stick above the 20 MA as the price enters the 50 and 38 fib retracement level while also entering the support zone . RSI will typically be between 60-70 during this period too and is another supporting technical indication that the support level will hold.

COF is in an uptrend supporting the swing long decision, always trade with the direction of the overall market. Plus healthy fundamentals and general economic market conditions, there's plenty of support to suggest COF will be prime for a swing long position by the end of the week into next week.

I'd look for an 8-11% increase from the support zone with a stop loss placed below the ascending triangle structure, aiming for a 1-3 risk-reward ratio where possible.