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Trading Bank Stocks in Earnings Reports: JPMorgan, Citi, Wells Fargo

Trading Bank Stocks in Earnings Reports: JPMorgan, Citi, Wells Fargo

What a whirlwind few days in the stock market.

On Thursday, a higher-than-expected CPI report initially sent the S&P 500 down to its lowest level in the year. The stocks then put together a massive reversal that saw the S&P rise nearly 200 points from the session low.

The market is now down on Friday, but it does so along with a general rally in bank stocks, as the group kicks off third-quarter earnings.

In light of this, I would like to take a closer look at the banks.

Trade JPMorgan Stock

JPMorgan shares (JPM) It rose nearly 2.5% after the big dog of banking stocks posted higher and dividend stocks. (Spoiler alert: All of the banks on this list beat earnings and revenue forecasts.)

On the above weekly chart, JPM appears to be stuck between a hammer and an anvil. Downtrend resistance has been very tough since summer, while the 10-week and 21-week moving averages continue to pressure the stock lower.

On the downside, the stock finally filled the gap near $105, although bigger support looms at the 78.6% retracement and upside support (blue line).

For what it’s worth, the uptrend sign extends back to 2009. This would be a reasonable area to buy on the bulls.

Over $125 and this stock could have some strong momentum.

stock trading wells fargo

I am amazed to see the bank stocks are trading so well in the day and the market is going down quite significantly. It looks as if the banks were able to lift the general sentiment or that the selling in the market will affect the banks more.

Anyway, Wells Fargo (WFC) Deliver powerful results.

On the upside, watch the level from $46 to $47. This has been a major focus so far in 2022 and is also where the 50 day moving average comes into play. More than these measures put more than $50 into the game.

On the downside, keep an eye out for $40. A break of this area could lead to a retest of the lows near $35, as well as the 61.8% retracement. If Wells Fargo falls this low, bulls will want to see the stock find support.

Below that, the gap sticks at $33.69.

City Group

Thank God Citigroup Chart (c) It is fairly straightforward after what some consider a mixed quarter.

Shares are up about 1.5% in the latest scan, but remain below last week’s high and the key $45-$45.50 region.

If you can’t clear this level, the $40-$42 area will still be in play. Not only does this area have the 78.6% retracement, but it was a strong support after the 2020 shorts.

If it collapses, Citigroup stock drops to no man’s land and technically, it could have a 2020 low of $32 running at some point.

But if Citigroup shares Can A clearing of the $45.50 level opens the door to the 21-week moving average and downside resistance.

Above that it could play $54 to $55, along with the 50-week moving average.

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