3 Big Stock Charts for Thursday: Bank of America Corp (BAC), Wells Fargo & Co (WFC) and Citigroup Inc (C)

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U.S. equities finished higher on Wednesday thanks to a rebound in energy prices.

Yet the technical and fundamental outlook looks challenging for stocks in the days to come as the Dow Jones industrial Average contends with major overhead technical resistance levels. Market breadth is narrowing. GDP growth expectations are being marked down. And the first-quarter earnings season — which is set to include the fourth consecutive quarterly decline in profitability — starts on April 11.

As a result, investors are showing some risk off tendencies. You can observe this in the way long-term Treasury bonds are surging in a way not seen since early February.

With that in mind, the three big stock charts to look at today belong to a trio of bank stocks, all of which look vulnerable to a pullback.

Bank of America Corp (BAC)

Bank of America Corp (BAC)Bank of America Corp (NYSE:BAC) shares have fallen to test support at its 50-day moving average, threatening a breakdown from a two-month consolidation range as fears grow over bank profitability. A drop in long-term yields associated with the rise in T-bonds is pinching the net interest margins that financial sector earnings are largely based on.

Edge Pro subscribers are holding a position in the Apr $13 BAC puts.

Wells Fargo & Co (WFC)

Wells Fargo & Co (WFC)Wells Fargo & Co (NYSE:WFC) shares are in the midst of a three-week downtrend pattern — within the context of a long-term downtrend that started last summer. UBS analysts initiated coverage on WFC with a sell in late March as they believe investors have already priced in key strengths.

WFC will report results on April 14 before the bell. Analysts are looking for earnings of 98 cents per share on revenues of $21.7 billion.

Citigroup Inc (C)

Citigroup Inc (C)Citigroup Inc (NYSE:C) shares continue to look vulnerable to a drop below its 50-day moving average, a level that has sustained it over the past several weeks. Shares have already dropped more than 31% from the high set last July.

Citigroup will report results on April 15 before the bell. Analysts are looking for earnings of $1.13 per share on revenues of $17.7 billion.

Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters. Two- and four-week free trial offers have been extended to InvestorPlace readers.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/04/3-big-stock-charts-for-thursday-bank-of-america-corp-bac-wells-fargo-co-wfc-and-citigroup-inc-c/.

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