Momentum Above $20.15 For Fifth Third Bancorp (NASDAQ:FITB)

Denver, CO, 08/13/2013 (Avauncer.com) – Fifth Third Bancorp (NASDAQ: FITB) (Closed: $19.27, Down: 0.16%) tried to recover after it opened weak on Monday but lost steam in the later part of the session and closed slightly in the red. The volume at 4 million was significantly lower than the average of 9 million. It was stuck in the range of $19.11 - $19.43 for the third straight session.

The glorious period of the stock was the decade of the 90s, when it rose from 1988 bottom of $2.80 to the 2002 Double Bottom of $69.70. In the next seven years, the stock lost all of its gains and then some as it hit the rock bottom at $1 by 2009. It made sure that all the investors were killed and then staged a quick-fire bounce to $15.95 in the next 13 months. After hitting the $15.95 zone for a few months, it finally broke above it in January 2013 and launched its next rally.

The rally of 2009 – 2010 was clearly sub-divided into 3 waves, implying that the current rally is corrective in nature and not a new bull run. The correction and Double top in 2012 showed a clear Flat correction completion. That would mean the current rally is the C Wave. If this C is projected to be equal to the A, then we get a target of $24.07. The Cup & Handle pattern visible in the charts gives us targets of $22.42 & $30.76.

The entire rally from the 2011 bottom of $9.13 is nicely contained in a rising channel and the price is hitting the upper boundary in the $19.70 - $19.80 zone. A failure to immediately breach this would bring a pause which is the most likely scenario seeing the daily structure and the overheated indicators.

Investors could keep an eye on the $22.42 - $24.07 levels on the upside and $18.25 - $18.60 on the downside.