Huntington Bancshares Incorporated (NASDAQ:HBAN) looks weak ahead of the Quarterly Earnings announcement

Denver, CO, 07/17/2013 (Avauncer.com) – Huntington Bancshares Incorporated (NASDAQ:HBAN) (Closed: $8.26, Down: 1.31%) is going to announce its quarterly earnings tomorrow, on Thursday. On the eve of its result, we check the price action if it gives us any clue about its next direction.

In 2009, the stock created a Double Bottom at $1.02 and began its turnaround. It went to make a high at $6.18 in May 2009 and then a wing low at $3.26 in July of the same year. A huge range has begun to develop since. Connecting the 2010 & 2011 lows, we get the lower boundary of the range and connecting the 2010 & 2011 highs we get the upper boundary.

At the current high of the month $8.66, the price has hit exactly the upper boundary of the range, which would be a strong long term resistance and a serious challenge for the bulls. The bulls would obviously want the price to cross $8.70, but it might not be that easy with all the indicators currently at an overstretched state. Another medium term channel is seen in the weekly charts which contains the whole rally from the November 2012 low of $5.81. The upper boundary of that channel came at $8.66 too, which re-emphasizes the importance of the resistance faced with the price in the zone of $8.66 to $8.76.

On the other hand if $8.10 is broken, then it can go all the way to $7.65. The volume pattern indicates some distribution in the higher levels. May be smart money is playing safe and getting on the sidelines as a break below $7.40 - $7.65 may drag it below $7.

Bulls would bet on the lack of negative divergence in the daily or weekly charts but they have to conquer $8.45 first for any comfort. A failure to do that would bring the bears with more force.