Stock of the day: ING

In today’s analysis we’re coming back to the banking sector, to the European banking sector to be precise, where one of the biggest players on the old continent is ING. This will be the first time we analyse this instrument and one of the very first times we do it on the lower timeframes – in this case, on the H1.

The reason you’re reading this piece is that ING is now finishing a bullish correction. This correction is shaped like a wedge (blue lines) and is apparently coming to an end. The main trend here is bearish, so we anticipate the breakout of the lower line of the wedge.

Let’s take a look at how this scenario could play-out. Straight after the bearish breakout, the price would have to deal with a major horizontal support on the 9.33. It’s not only a 23.6% Fibonacci but also a crucial level since the beginning of March, respected many times.

To make a long story short, the main sentiment is negative, the price is still in correction mode, and we still have to wait for a new sell signal. Technically, that will be created when the price breaks the lower line of the wedge, so short sellers should be waiting for that. As long as the price remains inside of the wedge, the short-term bullish correction is still on.