Let’s put it this way–what IS doing well in this bearish correction? My Trending123 Pattern Scan powered by Recognia says some of the best technically bullish stocks right now are banks. Here are banks showing bullish continuation diamonds to take note of in the space.
Click to EnlargeSusquehanna Bank (SUSQ), a financial holding company with banks in the mid-Atlantic region, has developed a bullish continuation diamond over the past 87 days. The price has broken upward out of a consolidation period, suggesting a continuation of the prior uptrend. The pattern begins during a downtrend as prices create higher highs and lower lows in a broadening pattern. Then the trading range gradually narrows after the highs peak and the lows start trending upward. When the price breaks upward out of the diamond’s boundary lines, it marks the resumption of the prior uptrend.
Price Target: $13.50 – $13.80
Popular (BPOP), a bank holding company that operates Banco Popular de Puerto Rico and Banco Popular North America (BPNA) in New York, California, Illinois, New Jersey and Florida. Its stock has also developed a bullish continuation diamond over the past 99 days, which makes this a long term hold. This is a steady-eddy stock that isn’t necessarily correlated to the market.
Click to EnlargeAs you can see in the chart, it’s showing the same continuation diamond pattern, just over a longer timeframe. The price is getting ready to break out from the diamond and will likely take about as long to reach its target as it did to develop the pattern.
Price Target: $32.70 – $33.60
InvestorPlace advisor John Lansing tracks the charts all day and offers expert technical analysis in his day trading, options and trading services: Power Trading at the Open, Parabolic Options and Trending123. Trending123 members receive access to the Trending123 Pattern Scan powered by Recognia free as part of their membership.