Shares of Discover Financial Services (NYSE:) are trading at new all-time highs as the new week begins. The stock was up just over 3.5% at mid-day, placing it in the top 5 of the SPX gainers list. This powerful move extends Friday’s high volume gain(+3.6%). Analysts at Citigroup (NYSE:) raised the stock to ‘Buy’ earlier in the day.
Despite reaching new all-time high today, DFS is far from overbought. Daily MACD is near neutral.
Solid support is underneath. The $111.00 to $113.00 area has held the May, June and July lows.
We expect more upside in the near term. On the downside, a close back below $110.00 would be a clear warning sign that today’s breakout has failed.
Earnings are due on July 21.
Note: We have no position.
You can read Gary S. Morrow’s original post here.
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