Stock Chart Analysis ZION
Zions Bancorporation (Public, NASDAQ:ZION)
I've mentioned before how ZION was one of my go to stocks on the short side during the financial crisis. For whatever reason I had a good feel for it and it was more volatile than some of the other bank stocks. Over the past year though, ZION has been gradually transitioning the way it behaves as a stock. While ZION is certainly still quite volatile, it has halted its precipitous decline and entered into a lengthy consolidation. In fact, it has had some fantastic rallies over the past year, even as it has been forming a much larger trading range.
Stepping back and looking at the past years daily chart, you can see that ZION has been consolidating in a huge triangle. ZION has been gradually finding buyers at higher levels, but it can't seem to clear the hurdle just above $20 a share. Some of the regional banks have been performing really well lately, and its interesting that ZION hasn't really corrected that steeply during the recent pullback. While a 10% drop is nothing to sneeze at, it is small when compared to the typical swing in the stock, and ZION is still well above the 50-day moving average. ZION is worth watching moving forward, as it could really get going on a breakout above $20. While it may not be best of breed or a sexy Chinese stock, it has proven time over time that it can move quickly in a short time frame.
Good Trading,
Joey
Sign up here for a FREE Beginner's Trading Terminology Webinar on February 26th.
blog comments powered by Disqus
