Discover Financial Services Stock Forecast
Red day on Tuesday for Discover Financial Services
(Updated on Jun 25, 2024)
The Discover Financial Services stock price fell by -0.98% on the last day (Tuesday, 25th Jun 2024) from $127.67 to $126.42. During the last trading day the stock fluctuated 1.18% from a day low at $125.95 to a day high of $127.44. The price has been going up and down for this period, and there has been a 0.48% gain for the last 2 weeks. Volume fell on the last day along with the stock, which is actually a good sign as volume should follow the stock. On the last day, the trading volume fell by -102 thousand shares and in total, 869 thousand shares were bought and sold for approximately $109.83 million.
The stock is moving within a horizontal trend and further movements within this trend can be expected. Given the current horizontal trend, you can expect Discover Financial Services stock with a 90% probability to be traded between $116.33 and $127.32 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the top. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.
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DFS Signals & Forecast
The Discover Financial Services stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $126.21 and $124.10. A breakdown below any of these levels will issue sell signals. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Thursday, June 20, 2024, and so far it has fallen -1.06%. Further fall is indicated until a new bottom pivot has been found. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.
Support, Risk & Stop-loss for Discover Financial Services stock
Discover Financial Services finds support from accumulated volume at $124.27 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
In general the stock tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the stock moved $1.49 between high and low, or 1.18%. For the last week the stock has had daily average volatility of 1.61%.
Our recommended stop-loss: $121.53 (-3.87%) (This stock has low daily movements and this gives low risk. There is a sell signal from a pivot top found 14 days ago.)
Trading Expectations (DFS) For The Upcoming Trading Day Of Wednesday 26th
For the upcoming trading day on Wednesday, 26th we expect Discover Financial Services to open at $126.60, and during the day (based on 14 day Average True Range), to move between $123.98 and $128.86, which gives a possible trading interval of +/-$2.44 (+/-1.93%) up or down from last closing price. If Discover Financial Services takes out the full calculated possible swing range there will be an estimated 3.86% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $126.73 (0.25%) than the support at $124.27 (1.70%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.
Is Discover Financial Services stock A Buy?
Discover Financial Services holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.
Current score: 0.909 Hold/Accumulate Unchanged
Predicted Opening Price for Discover Financial Services of Wednesday, June 26, 2024
| Fair opening price June 26, 2024 | Current price |
|---|---|
| $126.60 ( 0.144%) | $126.42 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for DFS
Fibonacci Support & Resistance Levels
| Level | Price | |
|---|---|---|
| R3 | 128.09 | 1.32% |
| R2 | 127.52 | 0.87% |
| R1 | 127.17 | 0.592% |
| Price | 126.42 | |
| S1 | 126.03 | -0.305% |
| S2 | 125.68 | -0.582% |
| S3 | 125.12 | -1.03% |
Accumulated Volume Support & Resistance Levels
| Level | Price | |
|---|---|---|
| R3 | 131.09 | 3.69% |
| R2 | 128.00 | 1.25% |
| R1 | 126.73 | 0.245% |
| Price | 126.42 | |
| S1 | 124.27 | -1.70% |
| S2 | 122.81 | -2.86% |
| S3 | 122.66 | -2.97% |
DFS Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Apr 17, 2024 | May 22, 2024 | Jun 06, 2024 | $0.700 | 0.570% |
| 2 | Jan 17, 2024 | Feb 21, 2024 | Mar 07, 2024 | $0.700 | 0.576% |
| 3 | Oct 18, 2023 | Nov 21, 2023 | Dec 07, 2023 | $0.700 | 0.684% |
| 4 | Jul 19, 2023 | Aug 23, 2023 | Sep 07, 2023 | $0.700 | 0.783% |
| 5 | Apr 19, 2023 | May 24, 2023 | Jun 08, 2023 | $0.700 | 0.616% |
FAQ
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