Raymond James Financial, Inc. (NYSE: RJF)

Raymond James Financial, Inc., through its subsidiaries, engages in the underwriting, distribution, trading, and brokerage of equity and debt securities in the United States, Canada, and Europe. The company’s Private Client Group segment provides securities brokerage services, including the sale of equities, mutual funds, fixed income products and insurance products to their individual clients. Its Capital Markets segment offers securities brokerage, trading, and research services to institutions with a focus on sale of the United States and Canadian equities and fixed income products. The Asset Management segment provides asset management services for individual investment portfolios and mutual funds, trust services and other fee-based asset management programs. Its RJ Bank segment purchases and originates commercial and industrial loans, commercial and residential real estate loans, and consumer loans. The Emerging Markets segment holds interests in joint ventures that operate securities brokerage, investment banking, equity research, and asset management businesses in Latin America, including Argentina, Uruguay, and Brazil. Its Securities Lending segment is involved in borrowing and lending securities from and to other broker-dealers, financial institutions, and other counterparties, primarily as an intermediary. The Proprietary Capital segment engages in principal capital and private equity activities.

To review Raymond’s stock, please take a look at the 1-year chart of RJF (Raymond James Financial, Inc.) below with my added notations:

1-year chart of RJF (Raymond James Financial, Inc.)

Over the last (3) months, RJF has been consolidating within a small Rectangle pattern. A Rectangle pattern forms when a stock gets stuck bouncing between a horizontal support and resistance. For RJF, the Rectangle pattern has formed a clear $35 resistance (red) and a $32 support (navy).  You will also notice that RJF’s $32 support was a resistance level back in October and November.

The Tale of the Tape: RJF has formed a small Rectangle pattern. The possible long positions on the stock would be either on a pullback to $32, or on a break above $35. The ideal short opportunity would be on a break below $32, but a short could also be placed on a rally up to $35.

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