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Capital One Financial Corp. - (COF) - December 14, 2023

At SIA Charts, we compare head-to-head battles of thousands of stocks, commodities, mutual funds and exchange traded funds daily and rank them by who is winning the most in their respective universes. The top 25% are considered the Green Favored Zone, 26-50% make up the Yellow Neutral Zone and the bottom half of each league table is considered the Red Unfavored Zone. Credit card provider Capital One (COF) has been climbing up the relative strength rankings in the SIA S&P 100 Index Report since the end of October, leaving the red zone, returning to the Green Favored Zone for the first time since August and reaching its highest ranking since March. Capital One has moved up 22 spots in the last week and 45 positions in the last month to reach 22nd place. A major breakout is underway in Capital One (COF) shares. Since May of 2022, COF has been trending sideways around the $100.00 round number, trading between $90.00 and $120.00. Bullish signs have been emerging with the shares breaking out of a downtrend this past May, and climbing above the 10-week moving average in October. This week, the shares have blasted through $120.00 and broken out over their base signaling the start of a new uptrend. Initial upside resistance appears in the $135.00 to $140.00 area, followed by $150.00, where a round number and a measured move converge. Initial support appears at the 10-week average near $110.00.

After selling off through 2022, Capital One shares bottomed out between October of that year and January of this year. The shares have staged a number of sizeable swings this year but the overall trend has been sideways. Following the final bottom in May, the shares have been creeping upward, establishing a higher low in October. Since then, the shares have been under renewed accumulation, climbing from near $90.00 toward $125.00 without even a 3-box correction along the way. This month, the shares have completed bullish Double Top and Spread Double Top breakouts, climbing to their highest level since June of 2022 and kicking off a new upleg. Previous column highs suggest potential upside resistance tests near $130.55, $138.55, and $144.15 on trend. Initial support appears near $113.60 based on a 3-box reversal. With a perfect SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 10 out of 10, COF is exhibiting short-term strength across the asset classes.

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