Technical Setups of the Week
There's a similar situation unfolding in another South American banking stock, Banco de Chile (BCH). To be fair, geographic location is pretty much the only thing these two stocks have in common. From a size and performance perspective, Banco de Chile sits head and shoulders above Banco Macro. But ultimately, we're more interested in what's going on with this company's price chart.
Shares of Banco de Chile have been trading inside an uptrending channel for the last few months, bouncing back and forth between well defined resistance and support levels. But shares staged a breakout on Tuesday, potentially catalyzing a much bigger move in this stock.
With yesterday's market action completely above support, now looks like an attractive time to make a move on this financial stock. If you're going to take the trade, I'd suggest placing a stop right under the top of that channel.
To see these plays in action, check out the Technical Setups for the Week portfolio on Stockpickr.-- Written by Jonas Elmerraji in Baltimore.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV