Earnings reports from the banks are rolling in, but investors aren’t piling in.
JPMorgan (JPM) reported earnings on Wednesday before the open, and so far the stock is holding key support.
Wells Fargo (WFC) and Goldman Sachs (GS) reported this morning, among other names in the space. So far, Goldman Sachs stock is flat and WFC is lower.
The moves have investors wondering whether now is the time to buy or they should avoid the group. Let's look.
Trading Goldman Sachs Stock
Chart courtesy of TrendSpider.com
It’s been a rough stretch for Goldman Sachs stock, which is down about 25% from the the 52-week high.
If the stock finishes lower on Thursday, it would mark its fourth straight weekly decline and sixth weekly decline in the past seven weeks. The shares on Thursday initially rallied on better-than-expected results, came under pressure, and struggled back.
The 10-week moving average has been active resistance for the stock. Now the bulls need to keep an eye on this week's high of roughly $333, which is also the post-earnings high.
If the stock can clear that, it opens the door to $350, then the declining 21-week moving average. Above all these levels and the $370 to $375 area could be in play.
On the downside, watch this month’s low at $308.20. On a drop below $300, Goldman Sachs stock could be looking at a test of the $278 to $282 area. The $275 breakout level from 2018 is just below.
Trading Wells Fargo Stock
Chart courtesy of TrendSpider.com
Switching gears to Wells Fargo, the shares are down about 5% on the day.
Earlier this week, the stock tried to reclaim its prior channel, as well as the 21-day and 200-day moving averages. It was rejected by all these measures and today’s post-earnings action didn’t help.
The stock is now struggling with the prior 2022 low near $45.75. If it can hold above today’s low near $45, maybe we can get a bounce.
However, this one is clearly lacking momentum. If it clears $50, then Wells Fargo stock can make a case for having bullish momentum again, but short of that, it’s below too many key levels.
Let’s see how support holds. A break of $45 puts the 200-week moving average in play. Below that and the 161.8% downside extension comes into play near $40.50.
