COF stock: buy or sell
Jul 29th, 2021
COF stock brief
- Capital One stock slightly moved -0.71% to close at $161.39 on the stock market on Wednesday.
- Last Monday broke out above its latest top at $162.00
- On July 22, Capital One presented its Q2 financial report
Should I buy Capital One stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $COF stock a buy?
In the current situation of Capital One there is just one buy setup eligible:
ATH buy setup
One of the most recommended trading strategies is to buy on All-time Highs (ATH) breakouts. The good point of buying at ATHs is that price doesn't struggle with upper resistances, and usually it scales fast. However, you must always be aware of a possible bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is always important. Price is now at 4.10% of all-time highs and it can breakout at any time, so if you want to trade this setup it's recommended to setup your order at $168.00. The stop loss would be placed at $151.20
|Buy setup||Buy point||Stop loss||Risk|
|ATH buy setup||$168.00||$151.20||10.00%|
Should I sell Capital One stock?
When you are a novel trader and you own stock shares with some profit, it's really hard to decide the good moment to sell and get your benefits. As when we have to buy shares, determining when is appropiate time to sell is not a haphazard decision, and we must use our own trading strategy. When selling, as well as buying, detailed strategies are very simple to use but are only valid for selling shares in your porfolio, not for selling short $COF stock
As a golden rule, you should never keep an investment that generates losses greater than those expected at the time of the buy. The moment to sell your stock must always be ruled by the stop-loss (automatic or manual)
Is it time to sell Capital One stock?
In the current situation of Capital One there is not any eligible sell setup, so Capital One stock holders with operations in profit can keep their positions
Capital One ratings
In the last 30 days we couldn't find any rating for Capital One
Capital One stock analysis
Supports and resistances
The current resistance levels are:
The current support levels are:
The price is trading near to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a sell signal, as price can move in these levels for many days and weeks
Relative strength index
The RSI dropped below the overbought level of 70 in early June after just crossing to the overbough zone for a single day (weak signal). The RSI value on Wednesday was 53.57. Capital One stock tanked a 2.93% since that level was lost
Capital One stock price history
Capital One went public priced at an adjusted price1 of $4.05 on Nov 1994. Since then, COF stock has risen by 3,884.94%, with an average of 149.42% per year. An investment of $1,000USD on Nov 1994 would worth $39,849.38 nowadays.
1: Adjusted price after possible price splits or reverse-splits
Price target for Capital One stock
Nobody can predict how much a share will be priced tomorrow. Banks and financial organisations publish their analysis forecasting how a particular stock will performance in the future.
Along with buy or sell recommendations, brokerage institutions release their price forecasts based on the stock price action and the company fundamental data. Most of these predictions follow the release of new fundamental data by the company, and many times. If you are a small investor you should not invest based on these forecasts.
We don't have any target price posted in the last month for Capital One.
Earnings and financials
On July 22, Capital One ($COF) had the quarterly financial call and released the report. COF beat analysts estimates and posted of $7.71, that is a 67.25% better than expected versus the previous estimates of $4.61. In line, reported revenues were $7.4 billion versus estimates of $7.1 billion.Same quarter last year, reported EPS was $-2.21, so recently reported EPS means an improvement of 448.87%. Looking at revenues, figures merely changed compared to $0.00 year over year.
COF ($COF) will host the Q3 earnings call next October. Wall Street analysts forecast of $4.36, that is a 43.45% less than previous quarter.
Capital One performance
|Capital One ($COF)||2.60%||10.80%||55.40%|
Important:The opinions expressed in this post are personal and should not be followed as recommendations for you to buy or sell shares. The author of this document does not know the particular scenarios of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are expressed for general educational purposes only
|Wednesday, July 28th, 2021|
|Day range||$159.88 - $163.54|
|Average true range||$6.88|
|50d mov avg||$159.23|
|100d mov avg||$148.07|
|200d mov avg||$122.54|
|Earnings date||October 20th, 2021|