KeyCorp Looks Locked Out Right Now

The long side of this bank does not look attractive.

During Wednesday's Lightning Round of Mad Money one caller asked Jim Cramer about KeyCorp (KEY) . "This is a great company but that 7% yield is a red flag. We need another bailout plan."

Let's check out the indicators and charts of KEY. 

In the daily bar chart of KEY, below, we can see the crushing February-March decline where the stock was more than cut in half in just a few short weeks. Prices recovered slightly into late April but have since rolled over to the downside.

KEY is below the declining 50-day moving average line after some recent rally failures to the underside of the line. The 200-day moving average line has been bearish since early March.

The On-Balance-Volume (OBV) line declined into early April and has not recovered all that much. The Moving Average Convergence Divergence (MACD) oscillator is turning down again from the underside of the zero line - another sell signal.  

 

In the weekly bar chart of KEY, below, we can see that prices made a long sideways pattern before the breakdown this year. This leaves a large band of overhead resistance. Prices are below the declining 40-week moving average line.

 

The weekly OBV line has been edging lower and the MACD oscillator is still bearish. 

 

 

In this Point and Figure chart of KEY, below, we can see a potential downside price target in the $8-$7 area. 

 

Bottom-line strategy: The long side of KEY is not attractive at this point in time. Look elsewhere for opportunities.

 

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