Seems like investors in bank stocks are excited about the possibility of a widening of the net interest margin (NIM) for the industry. One regional bank stock that looks attractive on the chart is BB&T (BBT).
In this first chart of BBT, above, we can see a small double bottom on BBT in August to September, with a bullish divergence from the momentum study. Prices have rallied over the 50-day Simple Moving Average, and the average is turning up. Prices rallied over the September highs and are just about touching the flat 200-day moving average. All of these positive signals point to a retest of overhead resistance in the $40 to $42 area.
The selloff in BBT this summer looks like just a dip to the bottom of a $42 to $34 trading range. The On-Balance-Volume line is steady to higher, and the Moving Average Convergence Divergence oscillator is giving a positive crossover and heading back to the zero line. We would look for BBT to rally above the flat 40-week moving average.