Here’s one banking stock that might be time to buy. (August 16, 2014)
I want to look real quickly here at Comerica ( NYSE:CMA ); here’s why, real easy, the 200-day moving average; there’s only one time that this has tagged this, but we’re still in a series of higher lows and we’re now at a key inflection point. This is actually pretty simple, the stock has slowed down it’s upward momentum, still you’ve got a nice configuration here where the 50-day moving average is above the 200-day and it is not too far away, they’re pretty close together here.
I would really look at this and I would classify the stock really as just being like in consolidation, it’s just in this consolidation phase here. I think this is a stock that you can buy; hopefully it falls a little bit lower. The idea is to get it as close as you can to the 200-day moving average but still have evidence of a bounce.
So right now, if you want to look to buy this stock, you just keep a stop a little bit below there. You’ve got a couple of things working in your favor: one, there’s not that much distance between where the stock is now and where you would get stopped out, where the “oops I’m wrong point” would be, and then also the other thing that’s going in your favor is, the stock still is in an uptrend.
That’s how I would trade this, but generally speaking, just so you know, in the market right at this particular time there aren’t that many great opportunities. There are a lot of opportunities that you don’t want to take advantage of, those are called fake outs; but for the most part we’re in kind of a sleepy market. But this is one I think will work for you as long as you’re just keeping track of where this stock is trading in relation to the 200-day moving average.
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