Comerica Incorporated (NYSE: CMA)

Comerica Incorporated, through its subsidiaries, provides financial products and services primarily in Texas, Arizona, California, Florida, and Michigan. The company operates in three segments: Business Bank, Retail Bank, and Wealth Management. The Business Bank segment offers various products and services, including commercial loans and lines of credit, deposits, cash management, capital market products, international trade finance, letters of credit, foreign exchange management services, and loan syndication services to middle market businesses, multinational corporations, and governmental entities. The Retail Bank segment provides small business banking and personal financial services consisting of consumer lending, consumer deposit gathering, and mortgage loan origination. The Wealth Management segment provides products and services, including fiduciary services, private banking, retirement services, investment management and advisory services, and investment banking and brokerage services.

Please take a look at the 1 yr. chart of CMA (Comerica Incorporated) that I have shown below with my added notations:

CMA

CMA has formed a long channel upward over the last (8) months. A channel is simply formed through the combination of a trend line support that runs parallel to a trend line resistance.  When it comes to a channel any (3) points can start the channel, but it’s the 4th test and beyond that confirm it. You can see that CMA has multiple test points between the channel resistance (blue) and the channel support (red). Following the CMA channel can provide you with both long and short trading opportunities.

The Tale of the Tape: CMA has formed a common chart pattern know as a channel, in this case, an up-channel. A long opportunity could be entered on a pullback to the channel support, which is approaching $40. Short trades could be entered at channel resistance OR if CMA were to break below the channel support.

Would you like assistance in making your TBS trades? If so, email me at Christian@yolopub.com and let’s talk about working together one on one!

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