Trend Tracker for Discover Financial DFS

December 03, 2021, 13:15 pm ET, BY THOMAS KEE- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

The data for Discover Financial (NYSE: DFS) herein utilizes proprietary algorithms produced by Stock Traders Daily and refined since the turn of the century.

Warning:

This is a static report, the data below was valid at the time of the publication, but support and resistance levels for DFS change over time, so the report should be updated regularly.  Real Time updates are provided to subscribers.  Unlimited Real Time Reports.

Subscribers also receive market analysis, stock correlation tools, macroeconomic observations, timing tools, and protection from market crashes using Evitar Corte.  

Instructions:

The rules that govern the data in this report are the rules of Technical Analysis.  For example, if DFS is testing support buy signals surface, and resistance is the target.  Conversely, if resistance is being tested, that is a sign to control risk or short, and support would be the downside target accordingly.  In each case, the trigger point is designed to be both an ideal place to enter a position (avoid trading in the middle of a trading channel), and it acts as a level of risk control too.

Swing Trades, Day Trades, and Longer term Trading Plans:

This data is refined to differentiate trading plans for Day Trading, Swing Trading, and Long Term Investing plans for DFS too.  All of these are offered below the Summary Table.

Longer Term Trading Plans for DFS

• NONE. Details

There is no current Support Plan to trigger a buy of this stock at this time. This usually means that there are no clear support levels at this time, so buying the stock as it falls could be considered catching a falling knife. Buy signals only exist if resistance breaks higher.
This often is a signal that the stock you are watching is weak. Waiting for a turn higher may be more intelligent than trying to catch a falling knife. In any case, new support levels are usually revised to the database at the beginning of the next trading session.

• Short DFS under 122.49, target n/a, stop loss @ 122.84 Details

The technical summary data is suggesting a short of DFS as it gets near 122.49, but the downside target is not available from the current data. This tells us to hold that position if it is triggered until a new downside target has been established (updates occur at the beginning of every trading session) or until the position has been stopped. The summary data tells us to have a stop loss in place at 122.84. 122.49 is the first level of resistance above 108.9, and by rule, any test of resistance is a short signal. In this case, if resistance 122.49 is being tested, so a short signal would exist.

Swing Trading Plans for DFS

• Buy DFS slightly over 113.40, target 122.49, Stop Loss @ 113.07 Details

If 113.40 begins to break higher, the technical summary data tells us to buy DFS just slightly over 113.40, with an upside target of 122.49. The data also tells us to set a stop loss @ 113.07 in case the stock turns against the trade. 113.40 is the first level of resistance above 108.9, and by rule, any break above resistance is a buy signal. In this case, 113.40, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short DFS near 113.40, target 107.18, Stop Loss @ 113.73. Details

The technical summary data is suggesting a short of DFS if it tests 113.40 with a downside target of 107.18. We should have a stop loss in place at 113.73 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 113.40, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Day Trading Plans for DFS

• Buy DFS slightly over 109.06, target 113.40, Stop Loss @ 108.81 Details

If 109.06 begins to break higher, the technical summary data tells us to buy DFS just slightly over 109.06, with an upside target of 113.40. The data also tells us to set a stop loss @ 108.81 in case the stock turns against the trade. 109.06 is the first level of resistance above 108.9, and by rule, any break above resistance is a buy signal. In this case, 109.06, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short DFS near 109.06, target 107.18, Stop Loss @ 109.31. Details

The technical summary data is suggesting a short of DFS if it tests 109.06 with a downside target of 107.18. We should have a stop loss in place at 109.31 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 109.06, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

DFS Ratings for December 03:

Term →	Near	Mid	Long
Rating	Weak	Neutral	Strong
P1	0	0	122.49
P2	103.94	107.18	133.40
P3	109.06	113.40	144.55

Support and Resistance Plot Chart for DFS

Real Time Updates for Repeat Institutional Readers:

Factset: Request User/Pass

Bloomberg, Reuters, Refinitiv, Zacks, or IB users: Access Here.