COF closes lower for the 2nd day in a row
Capital One Financial Corporation (COF) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, COF finished the month 1.93% higher at 63.80 after losing $1.04 (-1.6%) today, notably underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (COF as at Jul 31, 2020):
Friday's trading range has been $2.05 (3.16%), that's slightly below the last trading month's daily average range of $2.39. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for COF.
After trading as low as 62.74 during the day, the stock found support at the 20-day moving average at 62.87. The last time this happened on May 21st, COF actually lost -1.17% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 66.41 where further buy stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. Its common bullish interpretation has been confirmed for Capital One. Out of 64 times, COF closed higher 54.69% 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 60.94% with an average market move of 1.43%.