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.
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