Trading Idea: Is Capital One close to Support?

Published on Monday, 25 February 2013 07:24 Written by TradersHuddle Wire

New York, February 25th (TradersHuddle.com) - Shares of Capital One Financial Corporation (NYSE:COF) are trading very close to calculated support at $51.83 with price action closing at just $52.28 and placing the stock near levels where traders will start paying attention.

Capital One's stock range is defined by its calculated support defined at $51.83 and by the resistance level at $57.91, which should be used by traders planning their trades. These support and resistance levels are based on a peaks and troughs algorithm of the stock's price action.

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 $57.91 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the 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.