COF ends the day indecisive
Capital One Financial Corporation (COF) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, COF finished Thursday at 57.87 gaining $5.53 (10.57%), significantly outperforming the S&P 500 (6.24%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (COF as at Mar 26, 2020):
Thursday's trading range has been $6.94 (12.49%), that's above the last trading month's daily average range of $5.78. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for COF.
Unable to break through the key technical resistance level at 61.08 (R1), Capital One closed below it after spiking up to 61.40 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on March 20th, COF lost -4.75% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Capital One. Out of 167 times, COF closed lower 53.89% of the time on the next trading day after the market condition occurred.