After Capitol One’s sharp gap lower after earnings last month, the stock began to struggle at its 200-day moving average. The 200 day is a widely-watched reference point, and while it continues to slope higher you can see the difficulty bulls have had defending it this time. The stock has seen a tremendous appreciation since the end of the last bear market. If the bulls continue to lose traction here it is only a matter of time before that 200-day continues to act as resistance and eventually smooth out and turn lower.
I have been concerned that credit card leaders MA V are becoming prone to late-stage base failure in terms of their extended weekly charts since 2009. AXP and DFS are less so.
But as far as credit cards go, COF looks to be first in line to short whenever the overall market makes things more conducive to the ursine-minded.
_________________________________
Dammit. I had to look up ursine…
A for effort.
Ursine minded… Check out the big brain on Chess:-)
COF was the first stock I ever shorted. Will keep track of it.
Sentimental value