SunTrust began a long term consolidation shortly after its powerful post BB&T inspired, http://thisweekonwallstreet.com/simmering-suntrust/ breakout. This narrowing range has straddled the 200 day moving average since February 7th. Yesterday STI posted its best close of the year indicating the 7th month pattern may be giving way to a fresh rally leg.
STI has been lagging many of the banking/financial stocks of late. That may soon change. The stock is heading for its best close since late September of 2018 while leaving layers of support behind. This breakout move could carry shares much higher.
We consider STI a low risk buy near current levels. Initial support is now in place between $67.25 and $66.00. A run up top the 2018 highs looks likely. On the downside, a close back below $63.00 would violate this week’s low indicating more sideways action is ahead.
STI is due to report earnings on October 17th.
We are long STI in some managed accounts.