Technical Breakout in Regional Bank Stocks (PNC) as Rate-Cut Catalyst

about 2 months ago

Downtown Josh Brown

"And when you emerge from an inverse head and shoulders, you should be into a new leg of a bull market. Look at PNC4: the neckline breakout was around 180, with a retest at the 200-day moving average and an RSI reading about 72. This textbook pattern, coupled with the expectation that rate cuts will spur refinancing activity, makes it a compelling short-term bullish play."

The hosts detail a clear technical trade setup in regional bank stocks with PNC showing a textbook inverse head and shoulders pattern. The breakout signal—with a neckline around 180 and a subsequent retest at the critical 200-day moving average, reinforced by an RSI near 72—suggests a strong bullish catalyst if interest rates are cut, which would boost refinancing volumes and benefit regional banks exposed to the community market. This presents traders with an immediate, actionable opportunity in PNC stock.

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