Financial giant $PNC could follow the leader $SIVBWhenever I miss the chance to buy a breakout of a leading stock, I look for other stocks in the same industry. As my personal account is still too small to buy a stock like SIVB , I've been watching PNC to buy when it breakouts from its large base. This strategy has helped me to capitalize industry moves. A good example was when I missed TBK but bougtht CASH . Normally good stocks follow the leading stocks.
The earnings report missed estimates making the stock to gap down but had a higher close, this move could be the handle of the "cup & handle pattern" that has been making since May. I'll wait for the breakout to take a position.
The breakout pivot point is at $205, with a 2:1 risk/reward ratio my stop loss is at $196.55 with a target sell at $224.15. NYSE:PNC has a IBD RS of 84 with a rank #10 in its Industry Group.
Sometimes I like to check the options market of the stock. The option with highest volume and open interest is a CALL option with a 23.61% implied volatility. That means that the market is expecting an upside move of at least +1.50% on Monday, and a +3.40% move in the next 5 days. Next week is key.
