Bank Stock Looks Ready to Finally Smash Through Resistance
by Serge Berger | April 11, 2013 1:57 am
Serge Berger is the head trader and investment strategist for The Steady Trader[1]. Sign up for his free weekly newsletter here[2].
PNC Financial Services Group (NYSE:PNC[3]) — This diversified financial services company, along with the majority of the banking sector, has had a great run off the November 2012 lows. PNC is up about 25% since then, and recently ran into a major resistance/toggle point.
The resistance line in question dates back to early 2010 and sits around the $67 mark. On the weekly chart above, note that with the latest test of this line, the count comes to four times in the past three years. As I continually point out to my clients, the more a point of resistance/support gets tested, the less stable it becomes and the more forceful an eventual break turns out to be.
With earning season in U.S. banks and financials just one day away from kicking off, PNC couldn’t be arriving at this tricky spot at a more crucial time. The company is scheduled to report earnings on April 17, and while I will not be holding a position through the earnings announcement, any solid daily close above the $67 mark would have me sniffing at the long side of a trade.
A little closer up on the daily chart, the resistance line becomes more pronounced. What further speaks to a potential breakout past the $67 resistance area is the series of nicely defined higher lows (and higher highs) that are essentially coiling the stock up for a squeeze through resistance.
- The Steady Trader: http://thesteadytrader.com/
- free weekly newsletter here: https://forms.aweber.com/form/42/1636996642.htm
- PNC: http://studio-5.financialcontent.com/investplace/quote?Symbol=PNC
Source URL: https://investorplace.com/2013/04/trade-of-the-day-pnc-financial-services-group-nyse-pnc/