3 Big Stock Charts for Thursday: SunTrust Banks, Inc., Southern Co and Snap-on Incorporated

Don't presume Wednesday's wild bearishness leaves every name fighting for its life

stock charts - 3 Big Stock Charts for Thursday: SunTrust Banks, Inc., Southern Co and Snap-on Incorporated

Source: Shutterstock

For a short while on Tuesday, stocks were crushing it. But, only for a short while. By the time the closing bell rang, traders were once again terrified, sending the S&P 500 lower to the tune of 0.86%. The close of 2699.63 was the lowest close all month, with the setback led by iQiyi (NASDAQ:IQ) — it closed 13% lower for the session.

The overall American tech sector was hit particularly hard. Advanced Micro Devices (NASDAQ:AMD) lead that charge with a loss of 3.4%, leading to a 1.7% stumble for the group overall.

Still, trading is done on a case-by-case basis, and right now the stock charts of SunTrust Banks (NYSE:STI), Southern Co (NYSE:SO) and Snap-on Incorporated (NYSE:SNA) each make a pretty compelling trading case.

Big Stock Charts: SunTrust Banks, Inc. (STI)

Source: ThinkorSwim

Not only are most bank stocks struggling right now, many of them have made their way past a bearish tipping point. Not SunTrust Banks, though. That’s the best part about this blooming opportunity … there’s a lot of room ahead for more downside, if one more floor is broken.


Click to Enlarge
Source: ThinkorSwim
    • That floor is $64.86, where the 200-day moving average line is. That’s also where SunTrust shares hit a low several times since March.
  • There’s also been lots of volume behind the bearish days seen since May.
  • The most plausible downside targets are $56.24, $51.08 and $45.92, where key Fibonacci lines lie. The first two of those three levels also coincide with prior highs and lows, from the first half of 2017 when shares are trapped in a sideways range for quite some time.

 

Big Stock Charts: Southern Co (SO)

Source: ThinkorSwim

It’s just as much of a sector play as it is a company-specific trade. But, that doesn’t really matter. If Southern Co shares are rising because utility stocks are rising — as part of a flight to safety — then it’s rising for a reason that could last for the foreseeable future.

It’s just a happy coincidence that so many other bullish hints are falling into place.


Click to Enlarge
Source: ThinkorSwim
  • On Monday, SO shares hurdled their 200-day moving average line, and then found support at it in the meantime.
  • The bottom made in early June is actually part of a push-off of a rising support line that extends all the way back to late-2013.
  • If the overall market continues to struggle, the bullish undertow for utilities should persist.

Big Stock Charts: Snap-on Incorporated (SNA)

Source: ThinkorSwim

Last but not least, though any stock that managed to make forward progress against Wednesday’s bearish tide is impressive, that’s not the only thing that makes Snap-on Incorporated so interesting here. It’s the context of the gain that solidifies the bullish case.


Click to Enlarge
Source: ThinkorSwim
  • SNA shares have recently crossed above their 200-day moving average line, and though the market tide has been pointed lower for the past couple of weeks, the bulls here have been testing the waters of higher highs.
  • There’s also been lots of bullish volume behind the “up” days of late, while the losses have been on tepid volume. The Chaikin line’s move above the zero level to multi-week highs says this movement has some strong backing.
  • The bullish swing seen over the course of the past couple of weeks is ultimately feeding off of a strong horizontal support line at $141.30. It’s been verified several times since 2015. The upper side of this expanding trading range is currently at $186, but rising quickly.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley.


Article printed from InvestorPlace Media, https://investorplace.com/2018/06/3-big-stock-charts-for-thursday-suntrust-banks-inc-southern-co-and-snap-on-incorporated/.

©2020 InvestorPlace Media, LLC