Euro-Zone Bank Trade, This Is It
In lasts week's report we focused on the debtor nations of the European union, which is all of them. This week we shall focus on the large banks that hold much of the debt issued by those nations in the Euro-zone. This past Friday, all of the major bank stocks ended the trading session with a sharp sell off. Even the leading bank stocks in the United States closed lower and showed very ugly reversal days on the charts. Let us take a look at the leading European banks and find the important support and resistance levels for these stocks. The next few weeks should be another volatile period for all of the Euro-zone financial institutions.
UBS AG (NYSE:UBS) is one of the world's leading banks based out of Zürich, Switzerland. This company was recently under the microscope after reporting a huge $2.3 billion loss from a rogue trader. In any case, this leading financial stock topped out on February 28, 2011 at $20.08 a share. That high was retested in late April 2011, however, the stock was unable to break and close above the $20.08 high. On September 22, 2011 the stock found a short low at $10.41 a share. UBS bounced up to the $12.00 area last week, however, on Friday the stock closed lower by 0.75 cents to end the week at $11.28 a share. The stock remains below the Daily chart 20, 50, and 200 moving averages, this technically puts the stock in a confirmed down trend a weak technical position. Should the stock break below the recent daily chart lows traders can watch for near term support around the $10.35, $8.75, and $7.50, and $7.00 levels. Should the stock rally higher from current level traders can watch for resistance around the $12.00, and $14.00 levels.
Credit Suisse Group (NYSE:CS) is another leading financial giant that is based out Zürich, Switzerland. This stock topped out on February 18, 2011 when it traded as high as $47.63 a share. On September 12, 2011 the stock made a near term pivot low at $22.23 a share. Should this near term level fail to hold as support traders must watch for support around the $20.00, $18.50, and $16.00 levels. If the stock rallies from current level traders must watch for resistance around the $27.00, $29.50, and $33.00 levels.
Deutsche Bank AG (NYSE:DB) is one of the leading financial institutions based out of Frankfurt am Main, Germany. This stock has also been extremely volatile throughout 2011. DB stock topped out with the major stock indexes on May 2, 2011 at $66.00 a share. On September 21, 2011 the stock made a near term low at $28.57 a share. Since that low print the stock has rallied slightly higher closing at $35.15 a share on Friday. Should the stock break and close below the September lows there should be support around the $25.80, 23.50, and 21.75 levels. If the stock rallies higher from here the next resistance levels will be around the $38.00, $40.70, and $44.00 levels.