Did you see what happened to Comerica (CMA) today? Here’s your trade. (July 15, 2014)
I want to look at Comerica ( NYSE:CMA ) here. This is a small regional bank and they announced earnings today, guess what happened? The stock’s up, not only is it up but it’s coming out of a volatility squeeze, so this is actually pretty easy.
There’s the squeeze, there’s the breakout, you keep your stop right back in congestion here because if this is a bonafide breakout, if it’s going to work, then any pullback to here should not fall back into congestion; if it does then it’s a failed breakout. Instead, any pullback, and we don’t know whether it’s going to come from here or up here, but any pullback should stop short of falling below this prior resistance level.
So I think this is a trade that will probably work pretty well for you. The main thing that you’ve got to understand is, you should at least keep this in mind, the stock has been in an uptrend for a couple years; it has also been consolidating for this long, so this is not an overbought stock. You look at it and the stock is up almost 3 percent in a day, that’s kind of big for a banking stock. This stock is just kind of getting going; so I think there’s more upside here for you, give that a shot.
Free Chart