Diversified financial services organization PNC Financial Services Group (PNC) along with the majority of the banking sector had a great run off the November 2012 lows. Specifically the stock is higher by 25% since then and recently again ran into a major resistance/toggle point.
The resistance line/area in question dates back to early 2010 and currently sits around the $67 mark. On the longer-standing weekly chart below note that with the latest test of this line, over the past three years the count comes to four times. As I continually point out to my clients, the more a point of resistance/support gets hit, the less stable it ultimately gets and the more forceful an eventual break turns out to be.
With earning season in U.S. banks and financials just one day away from kicking off, PNC Financial Services Group (PNC) couldn’t be arriving at this tricky spot at a more crucial time. The company reports earnings on April 17th and while I will not be holding a position through the earnings announcement, any solid daily close above the $67 mark would entice me to sniff at the long side of a trade.
A little closer up on the daily chart of PNC Financial Services Group (PNC) the resistance line becomes more pronounced. What further speaks to a potential breakout past the $67 resistance area is the series of nicely defined higher lows (and higher highs) that are essentially coiling the stock up for a squeeze through resistance.
