Visa or Mastercard? Neither, Go With….

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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Dragonfly Capital Views Performance Through October 2012 Expiry

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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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