SunTrust Banks ($STI) has been trading range bound the last four months of trading and is now sitting just below the upper boundary of the range. Interestingly, multiple Inside Day relationships have also formed, which means we could see a major breakout opportunity ahead for this stock. Check it out…But first, the good news!
Secrets of a Pivot Boss is on Amazon.com!
Thank you to the readers that alerted me that the Amazon.com page for my book, Secrets of a Pivot Boss, is already active! You can find it HERE! I look forward to your thoughts on the book!
For those of you patiently waiting for an autographed copy, I hope to have my site ready to go sometime this week.
Trading Range
The daily chart shows $STI has been trading within the boundaries of an established trading range that spans from $22.00 to $26.75. Clear reversals have been seen at both the upper and lower boundaries of the range since June and price is now at another important decision point in the chart.
You can also see the Value Area High (VAL) for the month of September sits right at the upper boundary of the range, which has been a theme the last few months. This basically confirms the market sees this zone as the upper range of trading, which could lead to another round of responsive selling pressure.
If price cannot break through resistance at $26.75, we could see a drop back toward the monthly Point of Control (POC) at $24.26, before true support is tested at $22.00.
However, there is “clear air” above resistance and a virgin (or naked) POC left to fill at $29.50. If $STI can break through, and close above, the $29.75 zone, we could see a rally back to $29.50.
Inside Days
As you are aware, Inside Day relationships can lead to big breakouts in the market. $STI has formed a series of these relationships over the last few days, which indicates the stock is clearly coiling in advance of a breakout opporunity. Watch the outer boundaries of the Inside Day range ($26.20 and $24.65) for signs of a violation.
A breakout from this range could spark the next 3 – 5 day push in the direction of the break.
Let’s see how this plays out!
Cheers!
Frank Ochoa
PivotBoss.com
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