Verizon Communications (NYSE:VZ) – $28.79

News event: Reported slightly higher than expected third quarter earnings

Technical comment: Investors took profits on news. Verizon currently has a negative intermediate technical profile. Intermediate trend is down. The stock trades below its 50 and 200 day moving averages. Short term momentum indicators continue to trend lower from an overbought level. Strength relative to the S&P 500 has been negative since April. Next support is indicated at $27.75.

Chart courtesy of StockCharts.com www.stockcharts.com

Pitney Bowes, Inc. (NYSE:PBI) – $24.91

News event: Downgraded from Neutral to Sell by Goldman Sachs

Technical comment: Pitney Bowes currently has a positive intermediate technical profile. Intermediate trend is up. The stock trades above its 50 and 200 day moving averages. However, short term momentum indicators are overbought and rolling over. Stochastics recorded a short term sell signal this morning when the indicator fell below the 80% level. Short term downside risk is to its 200 day moving average currently at $22.29.

Chart courtesy of StockCharts.com www.stockcharts.com

Suntrust Banks, Inc. (NYSE:STI) – $19.68

News event: Downgraded by Dick Bove from Neutral to Sell.

Technical comment: Suntrust Banks currently has a short and intermediate negative technical profile. The stock broke a key support level this morning on a break below $20.04 and completed a head and shoulders pattern. Downside risk based on this pattern is to $15.65. Intermediate trend is down. Short term momentum indicators are trending lower from overbought levels. Strength relative to the S&P 500 Index has been negative during the past two months.

Suntrust was not the only bank to break through a key support level this morning. Bank Of America (NYSE: BAC) – $15.31 broke below support at $15.62 and Zions Bancorporation (NASDAQ:ZION) – $15.99 broke support at $16.06 to establish an intermediate downtrend.

Chart courtesy of StockCharts.com www.stockcharts.com

Chart courtesy of StockCharts.com www.stockcharts.com

Chart courtesy of StockCharts.com

Don Vialoux

Director of the Canadian Society of Technical Analysts

Comments offered in this report are for information only. They should not be considered as advice to purchase or to sell mentioned securities. An attempt to provide accurate data has been made, but accuracy is not guaranteed. Comments are from Don Vialoux and not from the Canadian Society of Technical Analysts.

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Tags - Previous posts for stock ticker: BAC, PBI, STI, VZ, ZION

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