Banks kicked off earnings season last week. JPMorgan Chase (JPM.us), Citigroup (C.us) and Wells Fargo (WFC.us) beat earnings estimates. They posted better than anticipated net interest income, with lending outpacing payments to depositors. Also contributing to earnings was better business from capital markets.
Wells Fargo increased its loan reserve for commercial real estate (CRE).
Other banks such as Goldman Sachs (GS.us), Bank of America (BAC.us) and others are due to report this week.
US.BANKS Technical Analysis
1. We do note Friday's candle has a long selling tail to it.
2. This is because capital rotated into safe-havens due to possible escalation in the Middle East conflict.
3. Nevertheless, FXCM's US.BANKs basket does have potential bullish signals.
4. Its green 5-day EMA has crossed above its orange 10-day EMA (black ellipse).
5. This puts the EMAs into bullish formation.
6. The daily RSI has crossed to the bullish side of 50 (green rectangle).
7. If the EMAs develop angle and separation and the RSI maintains above 50, US.BANK's momentum will be supportive of further price increases.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.