Regional banks have mixed weekly charts, but can be traded using key technical levels and Fibonacci retracements on their daily charts. 

BB&T (BBT - Get Report) had a negative weekly chart before it reported earnings, but now its chart is positive but overbought. It remains in correction territory. M&T Bank (MTB - Get Report) still has a negative weekly chart and remains in correction territory. PNC Financial (PNC - Get Report)  has a positive weekly chart and rose from bear market territory into correction territory.

SunTrust (STI - Get Report)  has a neutral weekly chart and is no longer in correction territory, but the chart shows a series of lower highs going back to July 2015. U.S. Bancorp (USB - Get Report)  has a positive weekly chart and is no longer in correction territory.

The fundamental backdrop for the banking system remains difficult, which makes these big regional banks trading vehicles, not buy and hold investments. Here's why.

The Federal Reserve remains reluctant to raise interest rates, which keeps pressure on net interest margins. Higher rates will eventually allow margins to expand.

The Federal Deposit Insurance Corporation will be releasing its Quarterly Banking Profile for the second quarter towards the end of August and investors should be aware of continued concerns. Banks have been stretching for yield and there's a growing mismatch between funds available and maturity of assets owned.

In addition, with crude oil prices struggling around the $40-a-barrel mark, additional loans to oil and gas producers will likely increase the noncurrent loan category in the FDIC data. Remember that in the first quarter reserves for losses rose for the first time since the Great Credit Crunch ended.

An important real estate loan category should be home equity loans. However, even as home prices rise to lending under the category of home equity lines of credit continues to decline. Home prices have been on the rise since March 2012, but HELOC lending has been declining since the end of 2007. Since the end of 2007, HELOC loans were down 24.7% at the end of the first quarter.

Here's a scorecard for the five regional banks.

 

Here's the daily for BB&T Corp.

Courtesy of MetaStock Xenith

BB&T stock trades around $37, down just 1.8% year to date and in correction territory 11.4% below its multiyear high of $41.90 set on July 23, 2015. The stock is up 24% from its 2016 low of $29.95 set on Feb. 11.

The horizontal lines are the Fibonacci retracements from the July 23, 2015 high to the Feb.11 low. The stock was near its 2016 high before Britain's vote to leave the European Union, or Brexit, of $37.01 set on June 6. The stock was above its 50% retracement of $35.93 when reporting earnings on July 21. The post-earnings high of $37.32 was set on July 27 and was essentially a test of the 61.8% retracement of $37.33. The stock remains its price gap to its Dec. 31 low of $37.74.

Investors looking to buy the stock should consider doing so on weakness to $34.64 and $32.71, which are key levels on technical charts until the end of September and the end of 2016, respectively.

Investors looking to reduce holdings should consider selling strength to $42.03, which is a key level on technical charts until the end of 2016.

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

Courtesy of MetaStock Xenith

M&T Bank stock trades around $114, down 6% year to date and in correction territory 15% below its multiyear high of $134.00 set on July 23, 2015. The stock is up 13.8% from its 2016 low of $100.08 set on Feb. 11.

The daily chart shows the Fibonacci retracements from the July 23, 2015 high to the Feb. 11 low. M&T broke below its 50% retracement of $117.04 following its earnings release on July 20 and has been trading back and forth around its 38.2% retracement of $113.04 since July 21. The stock remains well below its price gap to its Dec. 31 low of $121.18. Its 2016 high was $121.11 on April 20 which was a failed test of its 61.8% retracement of $121.04.

Investors looking to buy the stock on weakness to $111.89, which is a key level on technical charts until the end of 2016. A lower value level is $103.58 in August.

Investors looking to reduce holdings should consider selling strength to $118.49, which is a key level on technical charts until the end of September.

Here's the daily chart for PNC Financial.

Courtesy of MetaStock Xenith

PNC Financial trades close to $84, down 12% year to date and in correction territory 16.6% below its multiyear high of $100.52 set on July 23, 2015. The stock is up 8% from its 2016 low of $77.87 set on Feb. 11. In fact, a slightly lower low of $77.40 on June 27.

The daily chart shows the Fibonacci retracements from the July 23, 2015 high to the Feb. 11 low. The stock moved above its 23.6% retracement of $83.06 in reaction to its earnings on July 15 trading as high as $85.44 that day. Since then the stock has been sliding and has been trading back and forth around the 23.6% retracement level. PNC is well below its price gap to its Dec. 31 low of $95.20.

Investors looking to buy the stock should consider doing so on weakness to $76.11, which is a key level on technical charts until the end of 2016.

Investors looking to reduce holdings should consider selling strength to $88.19, which is a key level on technical charts until the end of September.

Here's the daily chart for SunTrust.

Courtesy of MetaStock Xenith

SunTrust trades at $42, down just 1.8% year to date and is 8.3% below its multiyear high of $45.84 set on July 17, 2015. The stock is up 35.4% from its 2016 low of $31.07 set on Feb. 11.

The daily chart shows the Fibonacci retracements from the July 17, 2015 high to the Feb.11 low. The stock declined following its earnings report released on July 22 but the low of $41.07 set on Aug. 2 was well above its 61.8% retracement of $40.20. SunTrust did fill the price gap to its Dec. 31 low of $42.83.

Investors looking to buy the stock should consider doing so on weakness to $40.69 and $36.56, which are key levels on technical charts until the end of September and the end of August, respectively.

Investors looking to reduce holdings should consider selling strength to $52.82, which is a key level on technical charts until the end of 2016.

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

Courtesy of MetaStock Xenith

U.S. Bancorp stock trades around $42, down just 1.3% year to date and 8.9% below its multiyear high of $46.26 set on July 16, 2015. The stock is up 13.6% from its 2016 low of $37.07 set on Feb. 11.

The daily chart shows the Fibonacci retracements from the July 16, 2015 high to the Feb.11 low. The stock traded as high as $42.50 on July 15 in reaction to earnings. This was a move above its 50% retracement of $41.67 and below its 61.8% retracement of $42.76. The 50% retracement has been a magnet since July 15. This stock filled the gap to its Dec. 31 low of $42.65.

Investors looking to buy the stock should consider doing so on weakness to $40.85, $38.78 and $35.85, which is a key level on technical charts until the end of September, the end of August and the end of 2016, respectively.

Investors looking to reduce holdings should consider selling strength to $48.62, which is a key level on technical charts until the end of 2016.

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