Discover Financial: Inside Week, Outside Week, Trendline Break?
Financials have been coming to life recently, and soon it could be Discover Financial’s turn.
The credit-card issuer has squeezed into a tight range since late summer. The result was an inside week (begun October 4) and then an outside week (begun October 11). That may suggest it’s starting to break out.
Next, you have the downward sloping trend that began on August 13. DFS is just now trying to push above it.
Third, the stock has fought back above the 100-day simple moving average (SMA) in the past month, gradually turning it into support. Last week, it managed to not only hold that line again but fight back above the faster-moving 50-day SMA.
The 8-day exponential moving average (EMA) has also remained above the 21-day EMA. This may suggest bulls are quietly taking control in the shorter time frame. Steadily rising MACD gives a potentially similar signal.
Finally, earnings are due on Wednesday afternoon. This could be bullish because last quarter’s numbers were boosted by fewer charge-offs. The credit environment has apparently continued to improve since then, judging by results at big lenders like
BAC
and
JPM
.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
The credit-card issuer has squeezed into a tight range since late summer. The result was an inside week (begun October 4) and then an outside week (begun October 11). That may suggest it’s starting to break out.
Next, you have the downward sloping trend that began on August 13. DFS is just now trying to push above it.
Third, the stock has fought back above the 100-day simple moving average (SMA) in the past month, gradually turning it into support. Last week, it managed to not only hold that line again but fight back above the faster-moving 50-day SMA.
The 8-day exponential moving average (EMA) has also remained above the 21-day EMA. This may suggest bulls are quietly taking control in the shorter time frame. Steadily rising MACD gives a potentially similar signal.
Finally, earnings are due on Wednesday afternoon. This could be bullish because last quarter’s numbers were boosted by fewer charge-offs. The credit environment has apparently continued to improve since then, judging by results at big lenders like
BAC
and
JPM
. TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
