Time for More Cashback from Your Credit Card (Stocks)

Back in June when I reviewed the credit card stocks, they looked ready to make a run higher (article below). They did. But now that two months and a major move down has occurred they may be heading right back to that launching pad. let’s take a look.

American Express, $AXP

American Express, $AXP, came off of the August bottom up over resistance at 47.70. This is now support and it is consolidating above the support and below the intersection of the 50 and 100 day Simple Moving Averages (SMA) up to 49.16. It has a Moving Average Convergence Divergence (MACD) indicator that is moving higher, but may be stalling, and a Relative Strength Index (RSI) that has moved above the mid line but is leveling. This could have another run in it, but it needs to get over 49.16 to be attractive. An entry on the break above 49.16 (use it as a stop) has a Measured Move (MM) target to 52.50, just under the previous high.

Discover Financial Services, $DFS

Discover Financial Services, $DFS, has been flirting with 25, a support and resistance level since April, coming into play 10 times so far. If it can create some space from 25 then it can complete the MM to 26 and has resistance higher at 26.8-27.0 and then 28.00. The MACD is positive, but not growing ad the RSI is now moving sideways after crossing the mod line, so it may consolidate further here or break lower. On a break lower it can be played short to support at 23.8 and then 22.50. Take what it gives you.

Mastercard, $MA

Mastercard, $MA, has a stronger chart than the first two. It held the support from July, and has rising SMA’s. It also has a RSI that is slightly rising and a MACD that has just crossed higher. If it can get through the consolidation at 330 then it has resistance higher at 340 and a MM first to 350 and then 380.

Visa, $V

Visa, $V printed a double bottom just under 80 and has climbed back above resistance at 87.50. It has resistance next at 90 and then 92.50 before the previous high at 96.15. The RSI is rising and the MACD is increasing supporting more upside. An entry here with a stop at 86 would work on the long side. If the market takes it down then 83.11-83.3 are support before a move lower to 81 and then 79.50.

Not nearly the same high quality set ups as were available in June but some decent trade set ups none-the-less. Be faithful to the entries and stops and the credit card scene might give you some cash back again.

Choosing the Right Credit Card (Stock)

As always you can see details of individual charts and more on my StockTwits feed and on chartly.)

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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.

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