PNC Financial Looks Vulnerable to a Decline

 | Mar 17, 2017 | 2:24 PM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:


PNC Financial Services Group  (PNC) made a big rally into February from last June, but a weakening picture of volume and momentum tells me it is time to take profits on PNC as it looks vulnerable to a decline.

In this daily bar chart of PNC, below, we can see the rally from the June low to the early 2017 high. The volume of trading peaked in November and declined every month since. The rising 50-day moving average line has tracked the rally nicely and was tested on a short dip in January. As prices have weakened this month they are getting into position for another test of the moving average line. The slope of the 200-day moving average line is positive but may be too far below the price action. 

The On-Balance-Volume (OBV) line has peaked and weakened slightly this month. The bearish divergence between the higher price highs and lower momentum readings is more noticeable in November and February.

In this three-year weekly chart of PNC, below, we can see that prices are too far above the rising 40-week moving average line. When prices get too far away from a major moving average they often have a return move. The weekly OBV line is positive but the weekly Moving Average Convergence Divergence (MACD) oscillator is just about to cross to a liquidate longs sell signal.

In this Point and Figure of PNC, below, we can see the sprint higher with no nearby support. PNC could correct to the $115-$110 area or even lower.

Columnist Conversations

there is some very heavy selling today and poor price action in Facebook today.  in the first hour the st...
Stock has been roasted last five trading sessions. Time to rotate into Ford ahead of big CEO long-term plan re...
Equity futures were up slightly just before 9:30 PM Sunday night.
Spent a good amount of time with PayPal CEO Dan Schulman this week...and came away fully understanding why thi...



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.