On Monday April 21, 08, Bank of America Corp. released its first-quarter profit which fell 77% as credit-loss provisions jumped $4.78 billion mainly driven by weakness in home-equity loans as well as credit extended to small businesses and home builders.

As oil hit new highs and markets didn’t do much to build on last week’s rally after a poor earnings report from Bank of America pressured financial sector, sending major indexes down as investors awaited more news on corporate earnings.

Could this be a continuation of the down trend of the financial stocks as bearish reversal opportunities are spotted in AIG and JPM.

aig.jpg

A Bearish Engulfing candlestick formation and on the high side of the price channel, the lower up cannel lines acts as first support while the lower down channel will be the second support.

jpm.jpg

An Evening Star Formation on a reverse wedge signaling a possible bearish reversal with plenty of potential profit all the way when it hit support at the bottom of the wedge.

One must monitor these trades with extreme caution as the VIX is testing its second support. Take whatever profit available the moment when spot a change in the trend.

“Chance favors the prepared mind” - Louis Pasteur

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