• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing

Shares of Stifel Financial Look Vulnerable to Further Declines

Here's what to avoid.
By BRUCE KAMICH
Mar 22, 2022 | 08:18 AM EDT
Stocks quotes in this article: SF

In his "Executive Decision" segment of Mad Money Monday evening, Jim Cramer spoke with Ron Kruszewski, chairman and CEO of Stifel Financial (SF) , the nation's fourth largest equity research firm.

Kruszewski said Stifel is still not very well known, despite being a diversified company that includes a bank, wealth management, fixed-income and research divisions. The company has grown from 600 advisers in 2005 to over 2,300 advisers today.

When asked about interest rates, Kruszewski noted that Stifel will see a 50% rise in the net interest income with just three rate hikes, and most estimates now predict as many as six rate hikes in the pipeline. "Rate hikes are a good thing for Stifel," he added.

Stifel is attracting some of the best talent in the business because it has a great culture that recognizes achievement, he said.

Let's check out the charts and indicators.

In this daily bar chart of SF, below, we can see that prices traded sideways for much of the past 12 months. In recent months prices have made higher highs and lower lows in what could be considered a broadening pattern. Broadening patterns can be continuation patterns (continuing the trend in force before the pattern) or they can be reversal patterns. This example in SF could be a reversal pattern. Prices are trading below the 50-day and the 200-day moving averages.

The On-Balance-Volume (OBV) line shows weakness from early February. The Moving Average Convergence Divergence (MACD) oscillator is crossing to the upside for a cover shorts buy signal.

In this weekly Japanese candlestick chart of SF, below, we can see the past three years of price movement. Prices have turned from an uptrend to a sideways to a downtrend. Prices are below the now declining 40-week moving average line.

The weekly OBV line looks like it peaked in February after a long rise. The MACD oscillator has made a long decline and is close to the zero line showing us little in the way of trend strength.

In this daily Point and Figure chart of SF, below, we can see a downside price target of $59.

In this weekly Point and Figure chart of SF, below, we can see a potential downside price target of $40.

Bottom line strategy: Like many other charts of financials, SF looks vulnerable to further declines. Avoid the long side.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Banking | Financial Services | Mad Money | Executive Interview | Brokerages

More from Investing

Even Some Out of Fashion Names Are Now Back in Style

Jonathan Heller
Jan 27, 2023 12:30 PM EST

Sure, we're only one month in to 2023, but so far these stocks are starting the new year with a bang.

I'm Making Small Bets With These 2 Stocks

Bret Jensen
Jan 27, 2023 11:30 AM EST

While I remain cautious on the overall market, I continue to act upon the limited opportunities I'm finding in the current market.

Chevron Is Crushing It and for My Portfolio Too: Here's the Trade

Stephen Guilfoyle
Jan 27, 2023 10:51 AM EST

The only reason to exit the stock now is profit-taking.

Good Dividend Payers With Pretty Charts

Bruce Kamich
Jan 27, 2023 10:15 AM EST

You can have the best of both worlds -- at least when it comes to a select group of dividend stocks -- as we'll see in this first part of a two part series.

Adani Companies Plunge Under Hindenburg Attack, Hurting Secondary Sale Attempt

Alex Frew McMillan
Jan 27, 2023 9:30 AM EST

Retail investors may baulk now they are being offered Adani Enterprises shares at a range well above their current trading price.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 11:48 AM EST REAL MONEY

    Watch Doug Kass on the Daily Rundown!

    In today's Action Alerts PLUS Daily Rundown, Doug ...
  • 11:03 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend On Real Money

    It's time to start using this power to build great...
  • 03:06 PM EST BOB LANG

    LEAPS Webinar

    This week, I offered a free webinar session talkin...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

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

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.

FactSet 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.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login