close icon

PNC Financial – Elliott Wave Analysis Works Yet Again

Earnings at PNC Financial suffered last year along with the entire financial sector. Net income before extraordinary items came in at $2.95B in 2020, down from $5.35 in 2019 for a 45% reduction. In our opinion, amid the biggest crisis since the Great Depression, the fact that PNC and its peers even managed to stay profitable is admirable.

Profit declines during a crisis are hardly surprising. What many didn’t expect, though, was the sharp surge in PNC Financial in the last three quarters of last year. The price briefly dipped below $80 a share in March 2020. Last week, it closed above $180. We are happy to say that to our regular readers that rally didn’t come out of the blue.

Bullish Elliott Wave cycle in PNC Financial

The chart above was published in a free article on our website on June 23rd, 2020. It depicts a very clear bullish 5-3 Elliott Wave cycle starting from the 2009 bottom. The first phase of the cycle is a five-wave impulse pattern, labeled 1-2-3-4-5. The second was an A-B-C flat correction.

According to the theory, once a correction is over, the preceding trend resumes. That was the logic we relied on when we shared our bullish view on PNC Financial last summer. Instead of extrapolating the recent crash into the future, we thought it had significantly de-risked the stock. A buying opportunity presented itself.

PNC Financial climbs to new record amid pandemic

Last month, PNC Financial climbed to $184, up 130% from last years’ low and 69% since we wrote about it. Now, assuming another impulse pattern is going to form, it looks like $200 a share is within reach. After that, however, another correction to ~$150 should be expected.

Similar Elliott Wave setups occur in the Forex, crypto and commodity markets, as well. Our Elliott Wave Video Course can teach you how to uncover them yourself!



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

Visa ‘s Diagonal Pattern Can Mean a Top is Forming

Visa has been a wonder to behold almost since it went public at $17.25 in March 2008. True, the following twelve months surely must have scared many shareholders, but the ones who stayed have been generously rewarded. Since the bottom in 2009, Visa stock is up over 2000% and that is without counting the dividends.…

Read More »

NYSE Operator Can Fall 50% as Correction Begins

Exchanges don’t exist in a vacuum. There are companies whose entire operation is dedicated to running them. We recently wrote about CBOE Global Markets – the company operating, among others, the Chicago options exchange. Today, we would like to examine another major company in the field – Intercontinental Exchange Inc. – the company owning the…

Read More »

Lululemon Stock Can Add ~30%. Then It Can Halve

Lululemon has gone a long way since its July 2007 IPO. Investors brave or lucky enough to have bought after its 93% collapse during the 2008-2009 Financial crisis and stayed the course have made a real fortune. in September 2020, LULU stock was just pennies away from the $400 mark. Although it dropped by a…

Read More »

Disney Stock Bulls Play With Fire Above $200 a Share

2020 was shaping up to be a disaster for Disney shareholders. Not only did the COVID-19 selloff cause a 48% plunge in the stock price, but the indefinite closing of cinemas worldwide crippled Mickey Mouse’s business operations. The company’s Disney+ streaming offering came to the rescue, but still could not prevent the company from posting…

Read More »

Snap Stock Bouncing Off Fibonacci Support

It took over three years for Snap Inc., the company behind the popular app Snapchat, to reach its IPO valuation. After reaching almost $29.44 on its second day of trading in March, 2017, SNAP stock fell as low as $4.82 in December 2018. On the other hand, investors bold enough to buy near those lows…

Read More »

Rapid7 Doubles As Elliott Wave Setup Bears Fruit

We first wrote about Rapid7 in late-August 2019. The stock was hovering above $55.50, but the structure of the post-2016 uptrend suggested a notable decline was in progress. In March 2020, it fell to $31.34, down 52.5% from its all-time high. A month later, with RPD still below $47, we shared our bullish stance on…

Read More »

Betting on 3i Stock a Year Ago Pays Off in Spades

The first time we wrote about 3i Group was in late-October 2019. The stock was hovering around 1100 pence a share following a 1000% gain in the past ten years. Needless to say, few thought a major decline was even possible. Fortunately, Elliott Wave analysis helped us see the bulls cannot be trusted. Five months…

Read More »

More analyses