Citigroup has been rubbing against 52-week highs and this week was another attempt to try to break out. The prior high was in September 2018 and Citi would need to pop another couple of dollars to break out. I think this is worth watching as JPM already touched a fresh new high.
JPM pushed to a fresh 52-week high this week, but so far it hasn’t held. As we can see on the chart, this 52-week high is at a very frictional level. So far, the stock has tried to break through this $115 level 14 times. If JPM can finally break through, this could be a meaningful advance.
US Bank Corp has held up last week’s breakout! That is refreshing to see that one of the banks has been able to hold the move. With the recent push to new highs on the S&P 500, it would be helpful to have the financials breakout and support the new highs.
Bank of America is also on the doorstep of 52-week highs. The horizontal line at $31 is an important benchmark and next week a break above will be a new 52-week high. Notice that all these stocks are ready to break out and one bank already has.
This looks like a great place to monitor for a successful breakout. A few weeks ago, I mentioned some of the Canadian bank stocks were also setting up for the same move. With all of this setting up for an upside breakout. I think it is probably important that the S&P 500 continues to move up and away in concert with these financial stocks. Over the next two weeks, we should be able to see if this is all going to move together.
Greg Schnell, CMT, MFTA