Ohio Banks For the Win!

• Posted by Greg Harmon
• on March 13th, 2013

Tonight I am taking a page from my New York City friends and focusing on my own back yard like nothing else exists. So when I look around there are only 3 publicly traded banks in the universe and they all look like they are set up for a good trade.

FirstMerit, $FMER

Akron based FirstMerit, $FMER, is the bank of the Black Keys (I don’t really know for sure). It is breaking higher on Wednesday, back over resistance at 15.50 and into the gap higher to 16.46. The Relative Strength Index (RSI) is rising and bullish and the Moving Average Convergence Divergence indicator (MACD) is rising on the signal line and has a positive histogram. These are supportive of more upside. There may be some resistance around the 15.80 or 16.25 area along the way higher.

Huntington Bancshares, $HBAN

Columbus based Huntington Bancshares, $HBAN, I noted last weekend had broken through the neckline of a bullish Inverse Head and Shoulders. That carries a price objective of 8.72. Moving higher out of consolidation of the initial break today it gave an entry to move higher. It also has support from the RSI and MACD for continued upside.
I entered long today using a bullish July 7/October 8 Risk Reversal, selling the July 7 Put and buying the October 8 Call.

Keycorp, $KEY

Finally Cleveland based Keycorp, $KEY, has been moving higher in an AB=CD pattern with a price objective of 10.16. The recent consolidation and now break higher Wednesday gives a target on a Measured Move to 10.80. The RSI is bullish and holding the technically overbought line while the MACD supports more upside on both the signal line and the histogram.

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