PNC Financial has been on fire

Super-regional banks 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) have surged since Donald Trump was elected U.S. president in November. Four of the five of these banks have rebounded by bull market percentages as each set post-election highs between Dec. 20 and Jan. 11.

The notion that the Trump administration will ease or replace tough provisions of Dodd-Frank regulations helped fuel the powerful rally for bank stocks of all sizes. But now these banks face the hurdle of fourth-quarter earnings, which begin before the opening bell on Friday.

The rate hike by the Federal Reserve on Dec. 14 has added to the bullish hype as such widens net interest margins. However, data from the Federal Deposit Insurance Corporation for the third quarter of 2016, reflect continued banking concerns.

BB&T Corp reports earnings before the opening bell on Jan. 19 and analysts expect the bank to earn 73 cents a share. The stock trades at close to $47, up 20.3% since election day and in bull market territory up 20.9% since setting its Nov. 8 low of $38.70. The stock set its post-election high of $47.85 on Dec, 21.

M&T Bank reports earnings before the opening bell on Jan. 19 and analysts expect the bank to earn $2.02 a share. The stock trades at $157, up 25.5% since election day and in bull market territory up 27.3% since setting its Nov. 8 low of $123.38. The stock set its post-election high of $160.76 on Jan. 3.

PNC Financial reports earnings before the opening bell Friday and analysts expect the bank to earn $1.86 a share. The stock trades at $121, up 25.5% since election day and in bull market territory up $27.3% since setting its Nov. 8 low of $95.30. The stock set its post-election high of $121.33 on Jan. 11.

SunTrust reports earnings before the opening bell on Jan. 20 and analysts expect the bank to earn 88 cents a share. The stock trades at $56, up 22.9% since election day and in bull market territory 23.2% above its Nov. 8 low of $45.49. The stock set its post-election high of $56.48 on Jan. 4.

U.S. Bancorp reports earnings before the opening bell on Jan. 18 and analysts expect the bank to earn 81 cents a share. The stock trades at over $51, up 14.7% year to date and shy of bull market territory 15.7% above its Nov. 8 low of $44.59. The stock set its post-election high of $52.68 on Dec. 20.

The weekly chart shows a red line through the price bars, which is the key weekly moving average (a five-week modified moving average). The green line is the 200-week simple moving average considered the "reversion to the mean."

The study in red along the bottom of the charts is weekly momentum (a 12x3x3 weekly slow stochastic), which scales between 00.00 and 100.00, where readings above 80.00 indicates overbought and readings below 20.00 indicates oversold.

A negative weekly chart shows the stock below its key weekly moving average with weekly momentum declining below 80.00 in a trend towards 20.00. A positive weekly chart shows the stock above its key weekly moving average with weekly momentum rising above 20.00 in a trend towards 80.00.

Note that the weekly charts are positive but overbought and parabolic bubble formations are evident. Here's the scorecard for the five regional banks.

 

Here's the weekly for BB&T Corp.

Courtesy of MetaStock Xenith

The weekly chart for BB&T is positive but overbought with the stock above its key weekly moving average of $45.65 and well above its 200-week simple moving average of $37.08, last crossed during the week of July 22, when the average was $35.78. The weekly momentum reading is projected to slip to 92.50 this week down from 93.23 on Jan. 6, with both readings well above the overbought threshold of 80.00.

Investors looking to buy the stock should consider doing so on weakness to $45.41 and $42.32, which are key levels on technical charts until the end of January and the end of 2017, respectively. A lower value level of $39.63 is in play through March. Investors looking to reduce holdings should consider selling strength to $50.29, which is a key level on technical charts until the end of June.

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

Courtesy of MetaStock Xenith

The weekly chart for M&T is positive but extremely overbought with the stock above its key weekly moving average of $149.97 and well above its 200-week simple moving average of $119.32, which was last tested at $116.73 during the week of Oct. 21. The weekly momentum reading is projected to slip to 94.86 down from 95.95 on Jan. 6, with both readings well above the overbought threshold of 80.00.

Investors looking to buy the stock on weakness to $140.85 and $130.66, which are key levels on technical charts until the end of January and the end of March, respectively. I show a semiannual pivot of $158.21, which is an aggressive price at which to reduce holdings. Investors looking to reduce holdings on strength to $165.89, which is a key level on technical charts for all of 2017.

Here's the weekly chart for PNC Financial.

Courtesy of MetaStock Xenith

The weekly chart for PNC is positive but extremely overbought with the stock above its key weekly moving average of $114.23 and well above its 200-week simple moving average of $86.35, last tested as a buying opportunity and "reversion to the mean" at $81.69 during the week of Aug. 5. The weekly momentum reading is projected to rise to 96.87 this week up from 96.53 on Jan. 6, with both readings well above the overbought threshold of 80.00.

Investors looking to buy the stock should consider doing so on weakness to $112.67, $106.45 and $100.63, which are key levels on technical charts until the end of 2017, January and March, respectively. Investors looking to reduce holdings should consider selling strength to $127.70, which is a key level on technical charts until the end of June.

Here's the weekly chart for SunTrust.

Courtesy of MetaStock Xenith

The weekly chart for SunTrust is positive but extremely overbought with the stock above its key weekly moving average of $53.80 and well above its 200-week simple moving average of $39.54, last tested as a buying opportunity and "reversion to the mean" at $35.83 during the week of April 8. The weekly momentum reading is projected to slip to 92.46 this week down from 92.85 on Jan. 6, with both readings well above the overbought threshold of 80.00.

Investors looking to buy the stock should consider doing so on weakness to $52.02, $46.07 and $43.15, which are key levels on technical charts until the end of January, March and 2017, respectively. Investors looking to reduce holdings should consider selling strength to $57.65, which is a key level on technical charts until the end of June.

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

Courtesy of MetaStock Xenith

The weekly chart for U.S. Bancorp is positive but extremely overbought with the stock above its key weekly moving average of $50.45 and well above its 200-week simple moving average of $41.61, last tested as a buying opportunity and "reversion to the mean" at $39.90 during the week of July 8. The weekly momentum reading is projected to slip to 90.57 this week down from 91.88 on Jan. 6, with both readings well above the overbought threshold of 80.00.

Investors looking to buy the stock should consider doing so on weakness to $50.37, $48.31 and $43.34, which are key levels on technical charts until the end of 2017, January and March, respectively. Investors looking to reduce holdings should consider selling strength to $55.61, which is a key level on technical charts until the end of June.

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