Financial Stocks Continue To Struggle
Most of the leading financial Stocks have been under pressure since the beginning of May. This leading sector is now starting to get extended on the downside and could be due for a short term bounce in the coming days. It is important to note that most of the leading financial stocks are trading below the daily chart 50 moving average and this puts this sector in a weak technical position, therefore, all bounces are just short term reactions in the sector until that important 50 period moving average is recaptured.
J.P. Morgan Chase & Co.(NYSE:JPM) is the leading financial stock in the market. This leading financial stock has sold off sharply since early April 2011. The daily chart is showing some short term daily support around these current levels. The stock looks to have near term intra-day support around $42.00 and $41.70 levels.
Bank of America Corp.(NYSE:BAC) is a leading financial stock that has struggled since January 14, 2011 when it topped out at $15.31 a share. This stock is now trading below all of the major daily chart moving averages which put the stock in a weak technical position. This morning, BAC stock, is trading higher by 0.09 cents to $11.47 a share. The stock looks to have intra-day resistance around the $11.55 level. Should BAC stock start to decline intra-day, traders can watch for intra-day support around the $11.35 area and more around the $11.20 area.
Wells Fargo & Co.(NYSE:WFC) is another leading financial stock that has struggled for most of 2011. This financial giant is trading below all of its major moving averages on the daily chart which put this stock in a weak technical position. In other words, the trend on this stock is down. Traders can watch for intra-day support on this stock around the $27.35 area and more around the $27.00 level.
Citigroup Inc.(NYSE:C) is a leading financial stock that topped out on January 14, 2011. This stock has declined by more than 20.0 percent since that high pivot point. This stock is also trading below all of the major moving averages, which put the stock in a downtrend and a weak position on the charts. Recently, the stock had a ten for one reverse split and it has been declining ever since that time. Intra-day the stock will have support around the $39.80 and $39.40 levels.
Nicholas Santiago
InTheMoneyStocks.com
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