You don't have to be an expert technical analyst to figure out the pattern shaping up in shares of Comerica ( CMA); the $7.5 billion banking stock has been in a well-formed uptrending channel since all the way back in November.
In a lot of ways, the uptrend in Comerica has mirrored the one in the broad market. There's been just one big difference: Comerica held its trendline support level in June when the S&P 500 broke down. That's a key indicator that CMA is outperforming the broad market. And that fact makes Comerica a "buy the dips" stock -- the ideal time to jump into shares comes on a bounce off of support.Buying on a bounce off of support makes sense for a couple of reasons. First, it's the place where there's the most upside potential to the top of the channel, and second, it's the place where we'll know we're wrong most quickly. A breakdown below the bottom of the channel is the exit signal in CMA; since it's been a good proxy for support, I'd recommend keeping a protective stop at the 50-day moving average.
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