Capital One Could Be Breaking OutCapital One has been stuck in a range most of the year, but some traders may think a breakout has begun.
The first pattern on today’s chart is the falling trendline along the highs of April and early July. COF surged through the resistance last week and remained above it this week.
Second, the financial stock has turned positive on the week after making a higher low and lower high. Such an inside week is a potentially bullish signal.
Third, the 50-day simple moving average (SMA) is near the 100-day SMA. That highlights the tight price action during its recent basing. Will expansion follow the narrow movement?
Next, MACD is rising and the 8-day exponential moving average (EMA) is above the 21-day EMA. Those patterns could indicate that short-term trends are getting more bullish.
Finally, COF bounced this week near the July 1 high. That may suggest that old resistance has become new support.
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