Editor’s Note: Sam Collins will be on vacation through June 25. Filling in for him are two other top technical analysts, Chris Johnson and Jon Lewis. 

Capital One Financial Corp. (NYSE: COF) — Continuing on with our theme of bullish crossovers, we’re sticking with the 10-day moving average crossing above the 20-day. This time we’re touting COF, which pulled back yesterday after a two-week 19% rally. 

Despite the recent surge, the stock is far from overbought, so we’re not concerned about depleted buying pressure. Actually, we welcome yesterday’s small retreat, as it pulled the shares back to the horizontal 50-day moving average (green line below). After taking four days to overcome this trendline, the shares have used it as support for the past three days.

And let’s not forget the bullish 10-day (blue line) and 20-day crossover (red line), which occurred a couple of days ago. The last such cross came in late February. At that point, the stock was in the beginning stages of a 40% rally that topped out at an 18-month high in April.

Peak call open interest in the July series occupies the $46 strike, which also is the area of several peaks in April and May. But that leaves more than 6% of upside room before potential resistance kicks in. Let the 50-day protect on the downside, while the momentum underscored by the bullish crossover takes the shares higher.

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