Will CAPITAL ONE FINANCIAL CORP Break Out? A Technical Analysis Perspective.

CAPITAL ONE FINANCIAL CORP (NYSE:COF) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:COF.

Technical Analysis Observations

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

Taking everything into account, COF scores 10 out of 10 in our technical rating. Both in the recent history as in the last year, COF has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that COF is one of the better performing stocks in the market, outperforming 84% of all stocks. We also observe that the gains produced by COF over the past year are nicely spread over this period.
• COF is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month COF has a been trading in the 129.69 - 139.95 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been consolidating recently, this may present a good entry opportunity.
• COF is an average performer in the Consumer Finance industry, it outperforms 68% of 52 stocks in the same industry.

Our latest full technical report of COF contains the most current technical analsysis.

How does the Setup look for NYSE:COF

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:COF this score is currently 9:

COF has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 138.72. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 137.44, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for COF in the last couple of days, which is a good sign.

How can NYSE:COF be traded?

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.