Don't Ignore This Chart!

PNC Financial Services (PNC) Makes Bullish Breakout

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Money is rotating towards financial stocks as the market prepares for what appears will be Fed tightening later in 2015 into 2016.  Higher yields on treasuries and a steepening yield curve generally increase net interest margin, the key metric in bank earnings.  So traders are using this fundamental development to encourage buying in many areas of the financial sector and bullish technical signs are popping up everywhere in this space, especially banks.  PNC Financial Services (PNC) is just one company in this area that broke out last week, clearing cup resistance.  The breakout near 96.00 initially measures another 5 points higher (depth of cup) to the 101.00 level.  Keep an eye on PNC and the rest of the banking stocks as the threat of higher interest rates should bode quite bullishly for this group.  Check out PNC:

Happy trading!

Tom

 

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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