COF climbs to highest close since June 9th
Capital One Financial Corporation (COF) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
COF ended Wednesday at 76.17 gaining $2.87 (3.92%), notably outperforming the S&P 500 (-0.46%). Today's close at 76.17 marks the highest recorded closing price since June 9th. Closing above Tuesday's high at 74.74, Capital One confirmed its breakout through the previous session high after trading up to $2.12 above it intraday.
Daily Candlestick Chart (COF as at Sep 16, 2020):
Wednesday's trading range has been $4.65 (6.33%), that's far above the last trading month's daily average range of $2.41. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for COF.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close above the 200-day moving average at 75.45 for the first time since February 24th. After having been unable to move lower than 72.68 in the prior session, the share found buyers again around the same price level today at 72.21. The last time this happened on September 11th, COF gained 5.05% on the following trading day.
Crossing above the upper Bollinger Band for the first time since Monday, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 69.57 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Its common bullish interpretation has been confirmed for Capital One. Out of 105 times, COF closed higher 54.29% 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 65.71% with an average market move of 0.76%.