Close to the 50 Day Moving Average: Capital One

Published on Monday, 18 June 2012 07:52 Written by TradersHuddle Wire

New York, June 18th (TradersHuddle.com) - Capital One Financial Corporation (NYSE:COF) closed the trading day at $53.81, near its 50 day moving average that is set at $52.85. Capital One's price action is just above this important support level, providing a trading opportunity.

Capital One Financial Corporation (NYSE:COF) is a diversified bank. The Bank, through its subsidiaries, offers a broad spectrum of financial products and services, like credit cards and car loans to consumers, small businesses and commercial clients both domestically and internationally. Headquartered in McLean, Virginia, Capital One, N.A. has approximately 1,000 branch locations primarily in New York, New Jersey, Texas, Louisiana, Maryland, Virginia and the District of Columbia.

The peaks and troughs algorithm shows calculated support at $47.99 and calculated resistance at $53.33. These levels should also be evaluated when planning trades, as they provide an insight into the latest price action.

Traders wanting to establish a position on Capital One should look for evidence of buying near the 50 day moving average, and open this position as close as possible to this important level. Also, they need to consider the latest range defined by the peaks and troughs algorithm for insights on other key levels that might impact an upside or downside move.