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Investors Beware, Some Major Banks Have Negative Weekly Charts

Including the four ‘too big to fail’ money center banks and five super regional banks, four peaked on March 1.

Wells Fargo (WFC) is the weakest of the four “too big to fail” money center banks. It set an all-time intraday high of $59.99 on March 1 and now has a negative weekly chart.

Citigroup (C) has the strongest year-to-date gain of 21.2% but it too has a negative weekly chart after peaking at $76.14 on Oct. 12.

JP Morgan (JPM) set its all-time intraday high or $102.42 on Oct. 26 and its weekly chart is neutral, but will be negative if it ends this week below its five-week modified moving average of $97.68.

Bank of America (BAC) set its multiyear intraday high of $27.98 on Oct. 26, and its weekly chart is positive but overbought, but will be negative given a close this week below its five-week modified moving average of $26.41.

All four are in bull market territory up between 20.5% and 59.1% since setting post-election lows on Nov. 8, 2016.

Among the four super regional banks three peaked on March 1 and only three are in bull market territory since setting their post-election lows on Nov. 8, 2016.

BB&T Corp (BBT) set its all-time intraday high of $49.91 on Nov. 1, but now has a negative weekly chart.

M&T Bank (MTB) set its all-time intraday high of $173.72 on March 1, and now has a negative weekly chart.

PNC Financial (PNC) set its all-time intraday high of $139.23 on Oct. 25, but now has a negative weekly chart.

SunTrust (STI) set a multiyear intraday high of $61.69 on March 1, and now has a negative weekly chart.

U.S. Bancorp (USB) set its all-time intraday high of $56.61 on March 1, and has a negative weekly chart.

Each of these nine stocks is among the largest components of the KBW Bank Index (BKX) – Here’s the weekly chart.

Courtesy of MetaStock Xenith

The weekly chart for the BKX is neutral, but will shift to negative given a close this week below its five-week modified moving average of $98.99 as such will pull the 12x3x3 weekly slow stochastic reading below the overbought threshold of 80.00. The horizontal lines are the Fibonacci Retracement levels of the decline from the February 2007 high of 121.00 to the March 2009 low of 17.75, which was a decline of 85.3%. The index has been above the 61.8% retracement level of 81.68 since the week of the presidential election. My annual value level is 85.85 with semiannual and quarterly pivots of 95.86 and 97.06, respectively, with a weekly risky level of 103.04.

Scorecard For The Nine Biggest Regional Banks

Bank Of America (BAC)

Courtesy of MetaStock Xenith

Given this chart and analysis, my trading strategy is to buy weakness to my quarterly and semiannual value levels of $24.40 and $23.68, respectively, and to reduce holdings on strength to my weekly risky level of $28.30.

Citigroup (C)

My trading strategy is to buy weakness to my quarterly and semiannual value levels of $64.77 and $61.45, respectively, and to reduce holdings on strength to my weekly risky level of $74.57.

JP Morgan (JPM)

Courtesy of MetaStock Xenith

Given this chart and analysis, my trading strategy is to buy weakness to my semiannual and annual value levels of $92.13 and $84, 24, respectively, and to reduce holdings on strength to my weekly risky level of $101.79. My quarterly pivot is $96.93.

Wells Fargo (WFC)

Courtesy of MetaStock Xenith

Given this chart and analysis, my trading strategy is to buy weakness to my monthly value level of $50.67, and to reduce holdings on strength to my semiannual risky level of $62.23. I show quarterly and annual pivots of $53.27 and $55.97, respectively.

BB&T Corp (BBT)

Courtesy of MetaStock Xenith

Given this chart and analysis, my trading strategy is to buy weakness to my annual value level of $42.32, and to reduce holdings on strength to my weekly risky level of $49.64. I show semiannual and quarterly pivots of $46.59 and $47.83, respectively.

M&T Bank (MTB)

Courtesy of MetaStock Xenith

Given this chart and analysis, my trading strategy is to buy weakness to my semiannual value level of $154.18, and to reduce holdings on strength to my annual risky level of $165.89. I show a quarterly pivot of $158.43.

PNC Financial (PNC)

Courtesy of MetaStock Xenith

Given this chart and analysis, my trading strategy is to buy weakness to my annual value level of $112.67, and to reduce holdings on strength to my weekly risky level of $136.83. I show quarterly and semiannual pivots of $129.24 and $131.87, respectively.

SunTrust (STI)

Courtesy of MetaStock Xenith

Given this chart and analysis, my trading strategy is to buy weakness to my annual value level of $43.15, and to reduce holdings on strength to my semiannual and quarterly risky levels of $59.11 and $61.81, respectively.

U.S. Bancorp (USB)

Courtesy of MetaStock Xenith

Given this chart and analysis, my trading strategy is to buy weakness to my monthly value level of $49.88, and to reduce holdings on strength to my quarterly and semiannual risky levels of $54.20 and $54.87, respectively.

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