Pick a Card, Any Card

• Posted by Greg Harmon
• on March 26th, 2012

Mastercard , $MA, and Visa, $V, have been the darlings of traders in the Credit Card space. Both have gone through the roof and look good for more. Last week Discover Financial, $DFS, joined them after reporting earnings. Now two more American Express, $AXP and Capital One Financial, $COF, are looking to join the party. Take a look.

American Express, $AXP

The daily chart above shows it breaking higher Monday out of a bull flag. The target out of that flag is is 62.20. The Relative Strength Index (RSI) is bullish and rising and maybe getting a bit overbought, while the Moving Average Convergence Divergence (MACD) indicator is positive and growing again. The weekly chart below is also looking great. Notice that if the 62.20 is reached it will be well above the 60.00 previous high from 2007. This is quite bullish.

American Express, $AXP

The second, Capital One Financial, $COF, is also breaking resistance at 55.78 and a bull flag with a Measured Move to 61. The RSI on the daily chart below is bullish and rising and the MACD is positive and growing. The weekly chart shows that the resistance has held since

Capital One Financial, $COF

since 2008. The resistance is also the neckline of an Inverse Head and Shoulders that has a price objective of at least 102.35. There is a lot of resistance along the way in the range of 66-77 as seen on the daily chart below from 2006 and 2007, but this is also a very bullish chart. So all the credit card stocks are ready to rise now. Take your pick.

Capital One Financial, $COF

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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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