Another day, another record high. That’s been the story over the last few weeks, minus a four-session “hiccup” that finally ended this morning. With the market stretching ever higher, it seems like bulls have completely forgotten about the stresses that kept stocks down in September.
And while that might be exciting for most investors, some analysts are worried that the current rally is standing on shaky ground. Bulls have already priced in a “phase one” trade deal between the U.S. and China, and if it doesn’t get here soon, we might have a holiday meltdown on our hands.
In the meantime, equities are chugging along. A few stocks, in particular, have done very well, and others, not so much. Pot stocks have had a rough few weeks, even after the House Judiciary Committee approved a marijuana legalization bill.
But there’s still some that have yet to unlock their true potential.
Regions Financial (NYSE: RF), for example, has plenty more room to grow.
In the daily candlestick chart above, you can see that RF just jumped out past its downwards sloping trendline connecting the standout highs since early November. It actually happened yesterday, and now that today’s candlestick managed to stay above that line, RF looks ready to continue its bullish trend.
The stochastics, though somewhat high, remain below 80, the current daily candlestick is trading above the last ten candle bodies, and another higher low has in been set.
In other words, RF ticks all the boxes for a move past its 2019 high. Significant resistance sits at that high, of course, but because of the stock’s positive momentum, RF’s price action appears robust enough to break through.
Meaning that once RF passes $17.35 (its yearly high), the sky’s the limit. Resistance past that point is near non-existent, save for the highs of late 2018.
So, in this case, going long with a trade trigger of $16.95 (slightly above today’s high) might make sense. An appropriately priced and dated call option could generate huge returns on what many investors would dismiss as a slow-moving stock.
But make no mistake – even if RF isn’t the quickest cat in the litter, it still has plenty of upside potential. Regional banks aren’t necessarily the “sexiest” investment either.
That shouldn’t scare you or anyone else away from taking a chance on RF, though, because if it ends up moving higher, another huge leg up could be coming very soon.