Trading Idea: - Is Capital One close to Resistance?
Published on Tuesday, 11 December 2012 06:52 Written by TradersHuddle Wire
New York, December 11th (TradersHuddle.com) - Shares of Capital One Financial Corporation (NYSE:COF) are trading very close to calculated resistance at $58.97. The stock ended the trading session at just $57.50, which is near levels that make it difficult to buy or start a position.
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.
Capital One's stock range is defined by its calculated support defined at $54.45 and by the resistance level at $58.97; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.
Traders don't have a clear entry point for Capital One. However, as the stock pulls back towards $54.45 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $58.97 then traders will get an opportunity to enter the stock as it moves to a higher range.