So many of the financial names have taken a beating in December. Whether it was from the lack of stimulus from Draghi, or Yellen becoming clear she is ready to raise rates, or concerns over junk bonds or all 3, many lost over 10% of their value.
One of them, Valley National Bancorp (N:VLY) is a good example of why it might be time to buy them back. Yes I know the Fed meeting is tomorrow. So wait if you want to. But price action is truth and it is speaking about a move higher.
The chart above shows three reasons that may get you to act today. First the stock printed a doji Monday. This is an indecision candle. Buyers move the stock higher but then are overwhelmed by sellers who push it lower. But then buyers show up again and it closes unchanged. With Tuesday’s action higher, it is confirming as a reversal. The second is what that reversal means. There is now an AB=CD pattern that targets a move higher to 11.90. Finally momentum is turning. The RSI is bouncing off of the oversold level.
So you can wait for the FOMC decision if you want. But this stock is already starting to climb out of the valley.
Disclaimer: 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.