COF closes lower for the 2nd day in a row
Capital One Financial Corporation (COF) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, COF finished the week 3.76% higher at 60.21 after edging lower $0.71 (-1.17%) today on low volume, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 60.34, the stock confirmed its breakout through the previous session low after trading up to $0.72 below it intraday.
Daily Candlestick Chart (COF as at May 22, 2020):
Friday's trading range has been $1.73 (2.84%), that's below the last trading month's daily average range of $3.06. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for COF.
Capital One closed back below the 20-day moving average at 60.91 for the first time since May 15th. When this moving average was crossed below the last time on May 15th, COF actually gained 9.25% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 63.98 where further buy stops could get activated. As prices are trading close to May's high at 64.93, upside momentum might accelerate should the market mark new highs for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Capital One. Out of 155 times, COF closed higher 51.61% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 58.71% with an average market move of 1.48%.