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US Banks: ahead of Earnings season.

July 10, 2018

A number of the major US banks report earnings starting from this Friday and these will be closely watched events as the results may help to shape the next move for the S&P500. This is how I am seeing the charts of the Financial Sector ETF, XLF, and some of the reporting banks shaping up ahead of earnings with key levels noted to watch for any new make or break.

 

Earnings for the US banks are as follows:

  • Fri 13th: JPM, C, WFC and FRC.
  • Mon 16th: BAC.
  • Tue 17th: GS
  • Wed 18th: MS, USB.

 

Financial ETF: XLF: In my opinion, the charts of all the banks below need to be viewed through the prism of the Financial sector ETF, XLF. This ETF is trading up near its all time High, circa $31, and this level was last seen just prior to the 2008 Global Financial Crisis. Any break and hold above this previous High would put the ETF into uncharted territory and many of the Bank charts are facing similar prospects. The XLF ETF, and many of the bank charts, could well be setting up for bullish-continuation ascending triangles.

 

XLF monthly: I am seeing the XLF ETF as forming up within a potential ‘ascending triangle’ and these are bullish continuation patterns. Any monthly break and hold above $31 would support this thesis and would bring the target level of $55 into focus:

 

XLF weekly: watch the Flag trend lines for any new breakout:

  • A bearish break would bring the support trend line into focus.
  • A bullish break would bring $31 into focus.

 

JPM monthly : J P Morgan reports Fri 13th July: Watch the Flag pattern shaping up under the $120 level for any breakout:

  • A bullish break would bring $120 into focus.
  • A bearish break would bring the support trend line into focus.

 

C: Citigroup: reports Fri 13th July:

C monthly: lots of scope for recovery here so watch the $80 for any new make or break:

 

C weekly: watch the Flag trend lines under the $80 level for any new make or break.

  • A bullish break would bring $80 into focus.
  • A bearish break would bring the support trend line into focus.

 

WFC monthly: Wells Fargo: reports Fri 13th July: watch the ascending triangle trend lines for any new breakout:

 

FRC monthly: First Republic: reports Fri 13th July: Watch the Flag trend lines for any new breakout:

 

BAC monthly: Bank of America: reports Mon 16th July: price action has been consolidating under the monthly 61.8% fib so watch the Flag trend lines for any new breakout:

  • Any bullish break and hold back above $30 would bring the 100% fib into focus and this is up near $55.
  • Any bearish break would bring the $20 S/R level back into focus.

 

 

GS monthly: Goldman Sachs: reports Tue 17th July: This has been consolidating under the $280 level so watch the Flag trend lines for any new breakout:

  • A bullish break would bring $280 into focus.
  • A bearish break would bring the support trend line into focus.

 

MS monthly: Morgan Stanley: reports Wed 18th July: This has been consolidating under the $60 level so watch the Flag trend lines for any new breakout:

  • A bullish break would bring $60 into focus.
  • A bearish break would bring the support trend line into focus.