M&T Bank Corporation (NYSE: MTB)

M&T Bank Corporation operates as the holding company for M&T Bank that provide commercial and retail banking services to individuals, corporations and other businesses, and institutions. It offers demand, savings, time deposits, and NOW accounts; business loans and leases, including loans guaranteed by the small business administration; business credit cards; and financial services, such as cash management, payroll and direct deposit, merchant credit card, and letters of credit. The company also originates, sells, and services commercial real estate loans; and offers short-term and long-term borrowed funds, brokered certificates of deposits, interest rate swap agreements, and foreign exchange services, as well as invests and trades in securities. In addition, the company provides consumer installment loans, automobile loans, home equity loans, and lines of credit; investment products, including mutual funds and annuities; trust, fiduciary, and custodial services; reinsurance of credit life and accident, and health insurance; insurance agency services; securities brokerage and investment advisory services; and investment management services to certain private funds.

To review M&T’s stock, please take a look at the 1-year chart of MTB (M&T Bank Corporation) below with my added notations:

1-year chart of MTB (M&T Bank Corporation)

MTB has rallied nicely from its June bottom. However, over the last (5) months the stock has been stalling at a clear $105 resistance level (blue). A break though this level would be a 52-week high and should mean higher prices overall for the stock. Another failed attempt to break through the $105 level could mean a fall back down to the $95 area (green) from back in October through November.

The Tale of the Tape: MTB is testing its $105 resistance level. A long trade could be made on a breakout though this level. A sell-off back down to the $95 area would provide an opportunity for a long trade as well.

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