Trade a Day: Capital One Financial Setup

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Capital One Overview

This setup came from a trend continuation algorithm that has shown strong long-term performance. Every weekend, I run calculations and produce a members-only video analyzing the algorithm outputs. If you want access to these insights, visit StatsEdge Trading.

Chart Analysis

Capital One Financial recently caught my eye due to a potential breakout from its current range. As shown on the chart, it had earnings last night. I typically avoid trading into earnings and prefer to assess the market's reaction afterward.

Earnings Reaction

Post-earnings, Capital One saw a significant gap down, followed by a strong rally throughout the day. The $149 level appears to be a critical support/resistance area. This gap down likely shook out weaker positions, making the $149 level more intriguing. I'm watching for a break above this level tomorrow or later in the week.

Key Trading Levels

The financial sector, represented by XLF, experienced a massive push out of a bull flag but had a weak day today, as did the S&P 500. Despite this, Capital One Financial showed relative strength. For the trade setup:

• Entry Point: I’m looking for a break above $149, preferably around $150.

• Confirmation: I want to see it hold above this level for a period to avoid getting trapped by a quick spike.

Conclusion

Capital One Financial presents a promising setup, especially if it can break and hold above the $149-$150 level. For more insights and detailed analysis, visit StatsEdge Trading.