PNC Financial - PNC - close 51.80 change -0.70 stop 54.62
The PNC Financial Services Group, Inc. (PNC) is a diversified financial service company. The Company is engaged in retail banking, corporate and institutional banking, asset management, residential mortgage banking and global investment servicing, providing many of its products and services nationally and others in its primary geographic markets located in Pennsylvania, Ohio, New Jersey, Michigan, Maryland, Illinois, Indiana, Kentucky, Florida, Missouri, Virginia, Delaware, Washington, and Wisconsin. It also provides certain investment servicing internationally. Retail Banking provides deposit, lending, brokerage, trust, investment management, and cash management services to consumer and small business customers within its primary geographic markets.
Target(s): 49.50, 48.75, 47.25
Key Support/Resistance Areas: 54.50, 53.50, 50.50, 49.50, 48.75, 47.00
Time Frame: 1 to 2 weeks
Why We Like It:
Financials continue to trade terrible and PNC looks ready for quick spike lower as the broader market pulls back. The stock has formed a bear flag over the past 5 days and is trading below its 20-day SMA. I suggest readers initiate short positions at current levels. The primary target is $48.75 which is a $3 move lower. If reached, the profit target on our option position is approximately +65%. I suggest keeping a loose initial stop on the position to account for volatility as the quarter winds down.
Suggested Position: Buy November $48.00 PUT, current ask $1.40, estimated ask at entry $1.70
Entry on September xx
Earnings: 10/20/2010 (unconfirmed)
Average Daily Volume: 5 million
Listed on September 29, 2010