Todays Big Stock: M&T Bank Corporation Common Sto (NYSE: MTB)

M&T Bank Corporation is a bank holding company. As of December 31, 2010, M&Thad two wholly owned bank subsidiaries: M&T Bank and M&T Bank, NationalAssociation. Through its subsidiaries, M&T provides individuals, corporations andother businesses, and institutions with commercial and retail banking services,including loans and deposits, trust, mortgage banking, asset management, insuranceand other financial services. The company operates in six segments: BusinessBanking, Commercial Banking, Commercial Real Estate, Discretionary Portfolio,Residential Mortgage Banking and Retail Banking.

To review M&T’s stock for potential trading opportunities, please take a look at the1-year chart of MTB (M&T Bank Corporation) below with my added notations:

From February through July, MTB was trading between (2) obvious levels: The $85 support (green) and the $90 resistance (navy). In August the stock fell through support and sold off as expected. Now, 6 months later, MTB is almost back up to its breakdown level of $85. This level should provide formidable resistance should the stock get there.

 

 

The Tale of the Tape: MTB has rallied back up near its previous $85 support. This level should act as resistance, thus a trader could enter a short trade with a stop above that level. However, should the stock break back above $85, a long trade could be made in expectation of a run back up to $90.

 

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade.  Capital preservation is always key!

Good luck!
Christian Tharp, CMT