Above is the technical analysis of Cullen Frost Bankers. It looks pretty good assuming my wave count is correct. If the wave count is not correct it is likely we are closer to a top than a bottom. The trendlines I have placed on the chart should help determine when a sell may be in order. However, the trend is your friend on this one and it has performed pretty well lately. Momentum is confirming the trend up as well. I will watch those indicators for lower highs as price makes higher highs for a divergence sell signal.
The $59 level is also pretty important to the wave count. From a relative perspective and useful to a sector specific fund this company is outperforming the other banks (bottom indicator on chart above). Notice how well it did relatively during the 2008/2009 crisis. If these trendlines are broken, but the relative strength holds, then a manager needing to buy banks for allocation or diversification reasons may want to hold onto this stock even though it is falling in price. For others, a break in the trendline may warrant a sell.
Overall this stock has been performing well and there is no reason yet to sell. Similar to pretty much every stock out there the low volume remains a little concerning. However, most other technical indicators are in favor of this company.
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It wouldn't surprise me to see this thing chop for the next few months (upper 50s and lower 60s)
ReplyDeleteWatch the trendlines, but e-wave count still in tact just blue iii topped earlier than initially expected. In blue iv now. Looking for a new high above January's in a few months.
ReplyDeleteWe do not want $56 to be breached.
ReplyDeleteAlso, can move the blue short term trend line to connect to the recent lows and also the body of the candle from November. That likely is the trendline we should be watching now. It would connect nicely with the Feb price activity. Another day or two down would likely violate it.
ReplyDeleteUpdated chart. Click on post title to go to updated chart.
ReplyDelete