2 Financials to “Check” Out
SUSQ and WAC are showing bullish signs
Bad puns aside, as I was scanning various technical patterns with my Trending123 Pattern Scan tool powered by Recognia, I noticed these two bank stocks with bullish setups. See for yourself and decide if the trade is right for you.
Symmetrical Continuation Triangle
Click to EnlargeWalter Investment Management Corp
) is a residential mortgage finance company that has developed a symmetrical continuation triangle over the past 74 days, making this an intermediate-term bullish trade that should play out over the next six weeks to nine months.
The price has broken upward out of a consolidation period, suggesting a continuation of the prior uptrend. A symmetrical continuation triangle shows two converging trendlines as prices reach lower highs and higher lows. Volume diminishes as the price swings back and forth between an increasingly narrow range reflecting uncertainty in the market direction. Then well before the triangle reaches its apex, the price breaks out above the upper trendline with a noticeable increase in volume, confirming the pattern as a continuation of the prior uptrend.
Recommendation: Buy WAC for a $55.00 – $58.00 target.
Click to Enlarge Susquehanna Bancshares
) is a diversified financial services company operating in the mid-Atlantic region. Its stock has developed a continuation diamond over the past 84 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.
Recommendation: Buy SUSQ for a $13.30 – $13.60 target.
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.
Article printed from InvestorPlace Media, http://investorplace.com/247trader/2-financials-to-check-out/.
©2017 InvestorPlace Media, LLC