Credit Cards Are Back, But Not The One’s You Think

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.

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