Is Capital One Close to Support?

Published on Tuesday, 05 February 2013 07:40 Written by TradersHuddle Wire

New York, February 5th (TradersHuddle.com) - Shares of Capital One Financial Corporation (NYSE:COF) ended the trading session close to calculated support at $56.08, a level that will raise the attention of traders looking for an entry point.

Capital One's stock range is defined by its calculated support defined at $56.08 and by the resistance level at $62.92. This range could be used as a reference by traders planning their next move. The area where buyer interest might materialize is defined as calculated support. Stocks trading near support might see upside if it can successfully hold the technical level. However, this area if breached will signal participants that the stock failed to entice buyers to step in to support it.

Traders wanting to establish a position should pay close attention to Capital One's price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $62.92 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.

Shares of Capital One Financial Corporation closed at $56.39 in the prior trading session.

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.