Irish Banks Continue Riding the Roller Coaster

Includes: AGIBY, AIBYY
by: Zignals

By Dr. Declan Fallon

Irish Banks continue to enjoy/suffer a roller coaster ride and the news hitting the tape this morning is hardly the Alka Seltzer the market was looking for.

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Back in early December 2008 I had suggested a potential opportunity for Allied Irish Banks (AIB) at support; although Anglo Irish (OTC:AGIBY) had already nixed its own attempt to hold similar support in November. In the end, negative sentiment won out and the AIB opportunity turned into a bust by December 18th when it breached €1.91 support.

The Irish banking sector faces new challenges with the collapse of Anglo Irish Banks, combined with the troubles in Barclays (NYSE:BCS), Bank of America (NYSE:BAC) and Citigroup (NYSE:C), have all helped push the banking sector to new lows. The latest UK bank bailout plan has seen a mixed response from traders.

There was very little joy for AIB shareholders from mid-December.

And the brief "Santa rally" utterly collapsed over the past couple of days:

It looks like traders are pricing a new name to AIB, that of Anglo Irish Banks.