I reviewed the charts of PNC Financial (PNC) on April 6 prior to their earnings release. Now that this regional banking name has reported their latest quarterly numbers Friday morning, let's check and see if the charts have improved or weakened.
In the updated daily bar chart of PNC, below, I can see some bullish divergences worth noting. The shares have made a new 52-week low but both the On-Balance-Volume (OBV) line has not made a matching new low and the 12-day price momentum is also showing us a bullish divergence. Maybe we are right in the middle of a bottom reversal. Stay tuned.
In the weekly Japanese candlestick chart of PNC, I see a mixed chart picture. The shares are still in a downward path and trade below the negatively sloped 40-week moving average line.
The weekly OBV line has been weak for a long time but we might be seeing a small bottom developing. Stay tuned. The slow stochastic indicator (an overbought/oversold indicator) is extremely oversold. Being oversold makes a chart prone to a possible bounce.
In this daily Point and Figure chart of PNC, below, I can see a potential downside price target in the $105 area. A trade at $121.25 or higher could improve this chart's stance.
Bottom-line strategy: PNC is off its early Friday lows. Maybe the shares are making a "key reversal day" but it is too soon to say. The downward trend may reassert itself today or next week. If prices are reversing we should have plenty of time to be a buyer. Bottoming picking is not my style.
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Let's check out COF shares as they rise on Berkshire's 13F filing.
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