This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Financial Stocks to Trade for Gains

BankUnited

BankUnited (BKU - Get Report) is another name that's sporting an ascending triangle pattern right now. In the case of this Florida-based banking stock, overhead resistance is in at $23, and support is trending higher from the company's late-October lows. The buy signal comes on the breakout above $23.

In an ascending triangle pattern, as with any other technical formation, it's great to know how to spot it -- but it's more important to understand why the setup works. In BKU, for instance, the $23 resistance level identifies a large pocket of supply of shares. As buyers bid the stock higher, bids get absorbed by selling pressures at the $23 level, causing that price to act as a sort of "ceiling" for shares. In an ascending triangle, though, shares bounce in between support and resistance, squeezing shares closer and closer to that resistance level and increasing the probability of a breakout.

>>Top Bank Stocks for 2012 From Credit Suisse

Once shares actually push above $23, we'll have a good indication that the excess of supply above $23 has been completely absorbed. Another important factor in BKU right now is momentum, a leading indicator that's measured in this case by the 14-day RSI at the top of BKU's chart. In this situation, momentum confirms the upside potential of the triangle.

3 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AMP $130.46 -0.29%
AFG $64.14 -0.02%
BKU $33.04 0.92%
CM $72.47 -0.04%
KIM $26.38 -0.86%

Markets

DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs