Yesterday, shares of Fifth Third Bancorp (FITB), broke a resistance level. There is a possible trade setting up, depending on what the stock does from here…
Fifth Third Bancorp (FITB) is a diversified financial-services company with over $140 billion in assets and has 1,123 full-service banking centers in 10 states throughout the Midwestern and Southeastern regions of the United States. The company’s investments in branch digitization are hurting the bottom line, but an increase in loans and deposit balances provides the bank capital for expansion.
Take a look at the 1-year chart of FITB below with the added notations:
Chart of FITB provided by TradingView
While climbing a clear trendline of support (green), FITB also formed an important level of resistance at $22 (blue).
FITB broke above key resistance at $22 and higher prices are likely. A trader could enter a long position on a pullback down to or near that level, with a stop placed under it.
Have a good trading day!
Christian Tharp, CMT