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Banks

Trade Update #stocksThe Chart: Price has fully reversed from the bottom of the large range (rectangle) and has now broken out of the top end of the range. Despite todays rough down day I am comfortable with my position as long as price can hold above the 59 area. The Narrative: Banks are taking a bit hit on earnings but the quarterly results we not as bad as the price drop may seem. Given the run most including Citigroup have had, taking some profits into the quarterly results was some what expected. The recent move in interest rates, reopenings, and overall global growth should all be tailwinds for the sector. Unless there is a double dip recession, I think the banks have more room to run especially if we hold the 59 area for Citi specifically.
NYSE:C
by IngenuityTrading
ABN - Dutch Bank - outlookWe made the run on the vaccination news in november and closed our position at the top. Then we went short. Last week closed shorts and are in cash. Why? We are at a crossroads. We do not know what effect the dividents news will have on the bank stocks, and same goes for the increased ECB support/lending. So it was safer to wait and see. We did not see much action from the news (no major movement). ABN tried now several days to break out of the red channel, but failed and kept re-testing support. It is a critical moment for the banks. With major lockdowns ongoing and the realisation that vaccine rollout will take time, there is not that much to look forward to in the banking sector. We might see a wave of foreclosures of small businesses due to extended lockdowns of restaurants, cafe's, and non-essential stores (clothing etc.), and we still have tourism industry and airports that are bleeding. Big brands will still find traffic to their webstores, but small businesses will struggle. On the upside, the european economy is robust and several sectors are overperforming (IT, ecomomerce, semi-conductors, metal, to name a few). Will the critical resistance at 7.918 hold? or are we testing lower? Let's simply wait and see. There is no major play to be made here until we can get a confirmation if the red channel will be broken, or continue downward. Shorting here based on the stochastics indicator is an option, but I already took profit from my short from the top and as we reach bottom shorting becomes more and more risky as a move. Also there are other more interesting trades out there right now. Stochastic indicators on the weekly and daily tell us we are poised for longer downward movement. However in this market we have seen some pretty unexpected volatitliy up and down, so keep a watch for a break in the pattern and re-adjust strategies based on that. See below charts: Trade safe. Remember, trade the chart, not the company!
EURONEXT:ABN
by STATICERROR
1
INGA - dutch bank - outlookHad a great run with INGA, then the sell-off from the top. Stochastics on weekly say we have downward momentum still. INGA is holding at the first green line (support) and if it breaks will move to the next green line (1 channel lower) if that breaks.... etc. etc. If INGA manages to break the red resistance line we will have a breakout and can go in for a swing trade. I am neither overly bullish or bearish on INGA right now, it could go eitherway. The bank is healthy and well funded, covid is not over yet, let's see what happens and trade accordingly! Remember, just trade the chart, not the company!
EURONEXT:INGA
by STATICERROR
1
Commonwealth Bank Long Setup After seeing the Banks in a major consolidation for almost 5 years now it seemed like an appropriate time to back them based on the long term bull channel with strong support levels. No current material Take Profit in mind with discounted shares bought for long term dividend reinvestment plans being the goal for this one. Based on where we are in the channel it probably is still a relatively discounted period if that next horizontal support does not cause a turn around. Do your own research! Happy Trading
ASX:CBA
by ichtusb