US Financials Slump: Is This a Massive Buy-the-Dip Opportunity for Bank Stocks?

JPMorgan Technical Analysis

The early pre-market trading for JP Morgan looks like it is going to be a little bit soft, but it’s worth noting that there’s an area right around the $335 level that could offer a bit of support. Certainly, we had been consolidating between $325 and $340 previously. So, a little bit of a bounce in this area would not be a huge surprise.

I’m looking to take advantage of cheap shares at this point. Interest rates driving higher due to geopolitical concerns could help the lending business. We’ll have to wait and see how that is perceived by Wall Street, but you can see this has been in a massive uptrend for quite some time, and there’s really nothing on this longer-term chart that tells me anything different is about to happen.

Goldman Sachs Technical Analysis

Goldman Sachs is probably a little softer, but I still think the $1,000 level has a certain amount of psychology attached to it that traders will be watching, especially now that the 50-day EMA is there. So, I say let a pullback, let’s see if it bounces, it could be a nice entry point. If we break it down below there, then I start to look again somewhere right around $960. I expect to see some market memory there to keep the market afloat. I have no interest in shorting.

Citigroup Technical Analysis

Citigroup looks like it could drop here. I think Citi, more likely than not, is going to try to find the $136 region, a scenario that previously had been important. We have the 50-day EMA sitting in that area as well. So I think all in all, this sets up for a nice buy-the-dip opportunity as well, although out of all of the banks in this video, this is probably the least appealing. But you know the expression, a rising tide lifts all boats, that might be what we see in the banking sector.

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