Wall Street and most buy-side analysts expected regional banks to benefit from higher interest rates as soon as the Federal Reserve began to raise interest rates. The Fed raised the federal funds rate on Dec. 16 but regional bank stocks did not rally; instead, they declined into correction territory more than 10% below multiyear or all-time highs set in July 2015.

Between this Friday and Jan. 21 BB&T Corp (BBT - Get Report) , M&T Bank (MTB - Get Report) , PNC Financial (PNC - Get Report) , SunTrust (STI - Get Report) and U.S. Bancorp (USB - Get Report) report earnings for the fourth quarter of 2015. 

From a technical standpoint, higher interest rates have not been positive for regional banks, based on data from the Federal Deposit Insurance Corporation and comments from the FDIC Chairman, Martin Gruenberg. That's why I said it was time to take profits on regional banks. This was based on continued FDIC concerns about credit risks as banks extend out the yield curve to pick up net interest margins.

Here's a scorecard for the five key regional banks.

 

Let's focus is on the daily charts as these stocks cascade below their Fibonacci retracements from their all-time or multiyear highs set in July to their "flash crash" lows of Aug. 24 or lower later in 2015.

Here's the daily chart for BB&T Corp.


Courtesy of MetaStock Xenith

The daily chart for BB&T shows the stock ended 2015 below its 50% Fibonacci retracement of $38.07. The horizontal lines are the retracements from the multiyear high of $41.90 set on July 23 to the 2015 low of $34.24 set on Oct. 2.

As 2016 began the stock plunged below its 38.2% retracement of $37.17. Then, on Jan. 7, the stock gapped below its 23.6% retracement of $36.05. The stock closed Tuesday at $34.90 in correction territory 16.7% below the July 23 high. The stock is just 1.9% above the low set on Oct. 2.

Note in a "sell on strength" strategy investors could have reduced holdings at its 61.8% retracement of $38.98 between Nov. 6 and Dec. 7.

Investors looking to buy BB&T should place a good till canceled limit order to buy the stock if it drops to $32.71, which is a key level on technical charts until the end of 2016.

BB&T is scheduled to report quarterly earnings before the opening bell on Jan. 21 and analysts expect the bank to earn 70 cents a share.

Here's the daily chart for M&T Bank Corp.


Courtesy of MetaStock Xenith

The daily chart for M&T shows the stock ended 2015 below its 50% Fibonacci retracement of $122.74. The horizontal lines are the retracements from the multiyear high of $134 set on July 23 to the 2015 low of $111.50 set on Oct. 2.

As 2016 began the stock plunged below its 38.2% retracement of $120.08. Then, on Jan. 6, the stock crashed below its 23.6% retracement of $116.79. The stock closed Tuesday at $110.49 in correction territory 19.2% below the July 23 high. The stock set a lower low of $108.32 on Jan. 11.

In a sell on strength strategy investors could have reduced holdings at its 61.8% retracement of $125.40 between Oct. 28 and Dec. 17.

Investors looking to buy M&T should place a good till canceled limit order to buy the stock if it drops to $95.68, which is the April 2013 low.

M&T is scheduled to report quarterly earnings on Jan. 19 and analysts expect the bank to earn $1.95 a share.

Here's the daily chart for PNC Financial.


Courtesy of MetaStock Xenith

The daily chart for PNC Financial shows the stock ended 2015 above its 61.8% Fibonacci retracement of $93.73. The horizontal lines are the retracements from the multiyear high of $100.52 set on July 23 to the 2015 low of $82.77 set on Aug. 24.

As 2016 began the stock plunged below its 61.8% retracement. Then, on Jan. 6, the stock closed below its 50% retracement of $91.64. On Jan. 7 the stock closed below its 38.2% retracement of $89.55. The Jan. 11 low of $87.37 was above the 23.6% retracement of $86.96. The stock closed Tuesday at $89 in correction territory 17.7% below the July 23 high.

In a sell on strength strategy investors could have reduced holdings at its 61.8% retracement and higher between Nov. 6 and Dec. 31.

Investors looking to buy PNC should place a good till canceled limit order to buy the stock if it drops to $76.11, which is a key level on technical charts until the end of 2016.

PNC is scheduled to report quarterly earnings before the opening bell on Jan. 15 and analysts expect the bank to earn $1.79 a share.

Here's the daily chart for SunTrust


Courtesy of MetaStock Xenith

The daily chart for SunTrust shows the stock ended 2015 above its 61.8% Fibonacci retracement of $42.37. The horizontal lines are the retracements from the multiyear high of $45.84 set on July 17 to the 2015 low of $36.79 set on Oct. 2.

As 2016 began the stock plunged below its 61.8% retracement. Then, on Jan. 6, the stock closed below its 50% retracement of $41.31. On Jan. 7 the stock closed below its 38.2% retracement of $40.24. The Jan. 11 low of $38.36 was below the 23.6% retracement of $38.92. The stock closed Tuesday at $39.39 in correction territory 19.7% below the July 17 high.

In a sell on strength strategy investors could have reduced holdings at its 61.8% retracement and higher between Oct. 28 and Dec. 31.

Investors looking to buy SunTrust should place a good till canceled limit order to buy the stock if it drops to $36.79, which is the Oct. 2 low.

SunTrust is scheduled to report quarterly earnings before the opening bell on Jan. 22 and analysts expect the bank to earn 87 cents a share.

Here's the daily chart for U.S. Bancorp.


Courtesy of MetaStock Xenith

The daily chart for U.S. Bancorp shows the stock ended 2015 below its 61.8% Fibonacci retracement of $43.41. The horizontal lines are the retracements from the multiyear high of $46.26 set on July 16 to the 2015 low of $38.81 set on Aug. 24.

As 2016 began the stock plunged below its 50% retracement of $42.53 and closed Jan. 4 below its 38.2% retracement of $41.65. The stock broke below its 23.6% retracement of $40.46 on Jan. 7, traded as low as $39.48 on Jan. 11, then closed Tuesday above this retracement at $40.62. This puts the stock in correction territory 16.1% below the July 16 high.

In a sell on strength strategy investors could have reduced holdings at its 61.8% retracement and higher between Nov. 6 and Dec. 30.

Investors looking to buy U.S. Bancorp should place a good till canceled limit order to buy the stock if it drops to $35.85, which is a key level on technical charts until the end of 2016.

U.S. Bancorp is scheduled to report quarterly earnings before the opening bell on Jan. 15 and analysts expect the bank to earn 79 cents a share.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.