Fifth Third Bancorp (FITB) has been a strong performer in 2021 and even made a fresh 52-week high Friday morning. However, the shares have quickly reversed direction and could close lower on the day.
Let's look closer at a few charts and indicators to see what's in store for this regional financial.
In the daily Japanese candlestick chart of FITB, below, we can see how the shares have rallied the past twelve months. Prices are trading above the rising 50-day moving average line as well as above the rising 200-day moving average line. Prices are not extended when compared to the slower-to-react 200-day line.
The trading volume has shown no increase during the advance and that is a disappointment. Typically, volume expands in the direction of the trend, but not for FITB. The On-Balance-Volume (OBV) line was stagnant from June and only shows some signs of more aggressive buying in the past five weeks. If prices decline below the low of the past five weeks -- or below $28 -- we are likely to see further selling.
The Moving Average Convergence Divergence (MACD) oscillator is crossing to the downside for a take profit sell signal.