Banking and financial services firm PNC Financial Services Group ( PNC) reported an EPS beat with a small revenue shortfall this Friday morning ahead of the market's opening bell. In full disclosure I am a PNC customer down in lower, slower Delaware and get the kind of personal service often lacking in the industry today.
Let's check out the charts and indicators.
In this daily bar chart of PNC, below, we can see that prices have declined from January to lows in June and July. PNC trades below the declining 50-day and the weak 200-day moving average lines. Rallies to the underside of the 50-day line in June and July (so far) have failed.
The trading volume surged sharply in mid-June at the price low and suggests a "throw in the towel" moment. The June low was just retested so the jury is out right now.
The On-Balance-Volume (OBV) line made a low in May and shows some "uneven" but positive movement. The 12-day price momentum study shows a low in June and what will likely be a higher low in July for a bullish divergence. 
In this weekly Japanese candlestick chart of PNC, we see only minor positive clues. Prices are in a downward trend as they trade below the bearish 40-week moving average line. The candlestick patterns do not show us a bottom reversal yet.
The weekly OBV line shows a long decline and only the hint of stability in June. The 12-week momentum study is improving but that is probably not enough to suggest a rebound.
In this daily Point and Figure chart of PNC, below, we can see a potential downside price target in the $125 area. A trade at $148 could precipitate further declines as it refreshes the downward trend.
In this weekly Point and Figure chart of PNC, below, we see a downside price target in the $141 area - less than the daily chart suggests.
Bottom line strategy: PNC could hold around current levels if the broad market averages can rebound but the pattern of lower highs in the past two months suggests further price declines are possible. Avoid the long side of PNC for now.
