Credit Cards Are Back, But Not The One’s You Think
- Posted by Greg Harmon
- on August 6th, 2012
The credit card stocks have been the focus of attention on and off for the past year or more. Mastercard, $MA, and Visa, $V get most of the attention. And Visa looks good making new highs, but two lesser followed, Capital One Financial, $COF, and Discover Financial Services, $DFS, look like the best of them and ready to move higher.
Capital One Financial, $COF
Capital One Financial, $COF, is pressing against resistance at 57.50, making a four point channel with 48 as the bottom. It has a bullish Relative Strength Index and a flat Moving Average Convergence Divergence indicator (MACD) as it tests the top. The rising 100 day Simple Moving Average is helping to create a series of higher lows along the way. A move over 58 carries a Measured Move higher to 68, just below the price objective at 70 from the 3-box reversal Point and Figure (PnF) chart at 70.
Discover Financial Services, $DFS
Discover Financial Services, $DFS, is making a new higher high as is climbs with support from the rising 20 day SMA. It also has a bullish RSI but it is paired with a positive MACD, both supporting further upside. A break over 36.60 carries a Measured move higher to 37.60 in the next step and the PnF carries an eventual price objective of 59.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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