Yesterday Jim Cramer identified 10 groups that are in bull markets and highlighted a few companies in each group. Financials were at top of the list and included JPMorgan Chase (JPM) , Bank of America (BAC) among others.
BB&T (BBT) is another financial that looks like it is headed higher. Let's examine the charts and indicators for timing and price targets as well as risk levels for BB&T, which is part of the Dividend Stock Advisor portfolio.
In this daily bar chart of BBT, above, going back 12 months we can see an advance from late June to late October, followed by a second rally from early November to early March. Prices are above the positively sloped 50-day moving average line and the rising 200-day moving average line. The daily On-Balance-Volume (OBV) line has matched the price rise, which confirms and supports the bull case. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but looks like it may cross for a liquidate-longs sell signal.
In this three-year weekly chart of BBT, above, we can see that we had a long sideways period of trading before the dramatic upthrust over the past four months. Prices are above the rising 40-week moving average line. The weekly OBV line has been moving higher, with the price action signaling accumulation and aggressive buying. The weekly MACD oscillator has been above the zero line or bullish since July 2016.
In this long-term Point and Figure chart of BBT, above, we can see the breakout trade at $40 in November (the letter "B" on the chart). The potential longer-term upside price objectives measure to $81.
Bottom line: BBT soon should resume its winning ways with new highs. Traders could go long BBT on strength above $50, risking below $46.