• 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
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

Huntington Bancshares Isn't Painting a Pretty Technical Picture Right Now

The Ohio-based bank saw its shares slide last Friday after it posted fourth-quarter results though it already was flashing a couple bearish signals.
By BRUCE KAMICH
Jan 24, 2022 | 08:10 AM EST
Stocks quotes in this article: HBAN

In his first Executive Decision segment of last Friday's "Mad Money" program, host Jim Cramer spoke with Steve Steinour, chairman, president and CEO of Huntington Bancshares (HBAN) , an Ohio-based bank that last Friday released better-than-expected fourth-quarter earnings on weaker-than-expected revenue.

Steinour said Huntington has a great deposit base and that rising interest rates will only add to its profitability. He said he also was encouraged by falling COVID hospitalization rates in Huntington's service area, which finally may be signaling that the pandemic is winding down.

Let's check on the charts and indicators of Huntington.

In this daily bar chart of HBAN, below, we can see that prices plunged sharply last week, gapping lower and breaking below the 50-day moving average line while testing the 200-day line all in the same day. The On-Balance-Volume (OBV) line turned lower as traders became more aggressive sellers. It looks like the uptrend in the OBV line has been broken. The Moving Average Convergence Divergence (MACD) oscillator crossed to the downside for a take profit sell signal.

In this weekly Japanese candlestick chart of HBAN, below, we can see a top reversal pattern over the past three weeks. Prices are poised to break below the 40-week moving average line. The weekly OBV line has generally followed the price action but it made a lower high since November when prices made a higher high; this is a bearish divergence. The MACD oscillator also made a bearish divergence and has crossed to the downside for another take profits sell signal. This indicator is only slightly above the zero line and an outright sell signal.

In this daily Point and Figure chart of HBAN, below, we can see a downside price target of $13. A decline to $13 will do serious damage to the chart, in my opinion.

In this weekly Point and Figure chart of HBAN, below, we can see the software is still projecting an upside price target. A trade at $14.13 or lower is likely to turn this chart bearish.

Bottom line strategy: While management may paint an optimistic picture of the fundamentals for HBAN, the charts tell me another story. 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: Earnings | Investing | Stocks | Technical Analysis | Banking | Financial Services | Mad Money | Executive Interview | Real Money

More from Stocks

Bettin' a Buck on Devon

Mark Sebastian
May 24, 2022 1:39 PM EDT

Here's where I see Devon Energy going and how to play it.

For Those Keeping Score of Failed Bounces in May, We're Up to 4

James "Rev Shark" DePorre
May 24, 2022 10:58 AM EDT

The essence of a bear market is failed bounces, and we have an epic one here on Tuesday.

Should You Buy a Retest of Trade Desk's Low?

Bruce Kamich
May 24, 2022 10:41 AM EDT

Here's what the charts tell us.

AT&T Should Dial It Up

Ed Ponsi
May 24, 2022 10:31 AM EDT

Here's my target for AT&T, as the charts line up.

Let's Pop the Hood on AutoZone to See How Its Engine Is Running

Stephen Guilfoyle
May 24, 2022 10:20 AM EDT

The auto parts retailer's third-quarter results trounced expectations, but its large debt and inventory positions offer reasons to pause before buying its shares.

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

  • 02:24 PM EDT PAUL PRICE

    An Interesting Chart

    I'm betting heavily that stocks will be way up aga...
  • 10:10 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    "Market Timing for Dummies"
  • 01:44 PM EDT STEPHEN GUILFOYLE

    Stocks Under $10 Portfolio

    We're making a series of trades here.
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 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