InvestedCentral
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FITB is a $9.4 billion financial company that operates as a diversified financial services company. If FITB looks familiar, it is. We featured this as our Chart of the Day for July 13, 2010, or a little more than one week ago. It's a case in point of why we do what we do. Proper technical entry points - either long or short - should allow small risks vs. big returns. If the risk analysis of the trade doesn't work out, it shouldn't be considered. In the case of FITB, we were looking for a move from the price at the time of $13.27 up to perhaps the $13.60 area, with an absolute final line in the sand of $14.15-$14.20. To the downside, we were looking for a move to approach recent lows at $11.75. Short entry at 13.27 and 13.60 and a profit objective at $11.75 would have resulted in a 14-15% gain in 6 trading days. That's a nice return in a downtrending market. On Tuesday, FITB printed a red hollow candle, generally indicative of a short-term bottom. Those wanting to trade FITB on the long side can do so with a very tight closing stop beneath $11.50. Our target would be the 20 day EMA, currently residing at $12.81.
