Dark Clouds Are Ready to Lift For Pandit and Moynihan

It has been 3 years since the financial crisis and there are still lingering problems. The economy is crawling higher. That is the good news. For two companies that were at the center of the collapse, Citigroup, $C, and Bank of America, $BAC, things are improving as well. I remember sitting on the trading floor in January 2009 and hearing story after story of traders walking down to the local Citi or Bank of America branch and taking out all of their money to ‘keep at home’ for a while. Both companies changed CEO’s in what is usually a ‘let the guy who was in charge take all the heat so we can move on’ play. But Brian Moynihan and Vikram Pandit have not had much to cheer about since gaining the leadership role. That may be about to change as their stock prices look ready for big moves. Let’s take a look.

Citigroup, $C

Citigroup, $C, has been trending higher on the weekly chart above and is at resistance at 34.35. It sits there with a rising Relative Strength Index (RSI) and a positive Moving Average Convergence Divergence (MACD) indicator that support more upside. A break of resistance finds the next level higher at 37.40, just below the 100 week Simple Moving Average (SMA) and a target from the ascending triangle break to 45.35. Those are 11% and 34% moves up from here.

Bank of America, $BAC

Bank of America, $BAC, is slightly less bullish (sorry Brian) but sits at resistance at 8.10 with a RSI that has been rising and is near a bullish term, and a MACD that is positive. A break of resistance on this name finds the next level higher at 10.54 also over 30% higher. That would also put it over the downtrending resistance and create a very bullish look.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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