Wednesday, March 21, 2012

Banco Santander - a quick in and out?


Good evening everyone.

After a few weeks of focusing exclusively on my trading, I resume my blog with the following update:

Today we see a small opportunity in one of the most powerful banks in the Spanish and European Market: BANCO SANTANDER, S.A. listed in the Spanish Stock Exchange as SAN (SAN.MC is the Yahoo Finance ticker) or STD listed in America in US$.

The following chart shows you the share price of SAN, which has experienced a pull back from today's high of 6.46 (highest value in the last few sessions) all the way to the low of 6.16 on the day. The stock is closing with a minor boost towards the 6.23 area.

As you know, I love Elliot Waves and in the following chart you can see a possible wave count that ends the 4th wave correction in today’s lows.

Although Mr. Bernanke has declared that the crisis in Europe is not over (thank you for reminding us) the European indexes have had a final jump, although not enough to close the day in green.

At 1700h GMT, we can see that the S&P and Nasdaq are already in positive and the Dow has bounced back from the day’s lows.

If the day continues good for the American equities, we could see a jump in tomorrow morning’s European stock allowing SANTADER to attempt a shot at Wave 5, which would obviously break today’s high of 6.46.

On the other hand, it could just fizzle out and resume the downtrend initiated today. Let’s see the action in tomorrow’s trading session with a possibility to pick up the stock at 6.28 – 6.30 (with a profit target of 0.08 to 0.10 a share). If it doesn’t trigger our buy stop and instead loses steam, then we’ll re-establish our levels and find a more juicy opportunity.  

Trade carefully. Trade with discipline.

@AmarDaryanani


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