Discover Financial Services, a bank holding company, provides direct
banking and payment services in the United States. It operates in two
segments, Direct Banking and Payment Services. The Direct Banking
segment offers Discover card-branded credit cards to individuals and
small businesses on the Discover Network. This segment also provides
other consumer banking products and services, including private student
loans, personal loans, home loans, and prepaid cards; and other consumer
lending and deposit products, such as certificates of deposit, money
market accounts, online savings accounts, and individual retirement
account certificates of deposit. The Payment Services segment operates
PULSE, an automated teller machine, debit, and electronic funds transfer
network; and Diners Club, a global payments network, as well as a
network partners business, which includes credit, debit, and prepaid
cards issued on the Discover Network by third parties.
To review Discover's stock, please take a look at the 1-year chart of
DFS (Discover Financial Services) below with my added notations:
Over the last 8 months DFS has consistently moved higher. Since June
though, the stock has formed an apparent trendline of support (blue).
Always remember that any (2) points can start a trendline, but it's the
3rd test and beyond that confirm its importance. DFS' trendline seems to
be important now that it has been tested a 3rd time back in October.
The Tale of the Tape: DFS has created a trendline of
support over the last 5 months. A long position could be entered on a
pullback to that trendline, which is approaching $50, with a stop placed
below that level. A short position could be entered if DFS were to
break the trend line support.
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