Visa or Mastercard? Neither, Go With….
- Posted by Greg Harmon
- on October 24th, 2012
When it comes to credit card related stocks Visa, $V, and Mastercard, $MA, always come to mind. But the charts of these stocks have had good runs and are currently pulling back. In contrast, Capital One Financial, $COF, does not care what card you use as long as they are the credit. And their stock looks great.
Capital One Financial, $COF
Capital One Financial, $COF, had been moving up against resistance in July and the appeared to fail on a break out higher starting September 14th. But with an additional 2 months it is now clear that it morphed from a consolidating pattern to a rising channel over this time period. Now continuing to rise it has a bullish Relative Strength Index (RSI) and a Moving Average Convergence Divergence indicator (MACD) that is positive. As long as it holds over the gap at 59 it is a good long hold, and on a break of that gap look for support at the bottom of the channel to hold as a signal to get long.
Discover Financial Services, $DFS
Discover Financial Services, $DFS, is another good name in the space. Consolidating after a break above a channel from 37.60 to 39.20 it has Bollinger bands coming in tightly foreboding a move. With the RSI in bullish territory and the MACD negative there is no clear view on which way it will break. Look for a move over 41 as a long entry and under 39.20 to retest the bottom of the previous channel.
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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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