SunTrust Claws Higher

SunTrust (STI) is pushing further into new high ground today. On Friday the stock closed just above its previous 52-week high, which was set back in mid-July. SunTrust is putting a little distance on the $36.30 level this morning with a 1% gain as it extends the powerful Nov. 8 breakout. The stock is now up just shy of 20% from the Nov. 1 lows, and is still not yet into overbought territory.

SunTrust (STI) -- Daily Source: View Chart » View in New Window »

A few days after its 4.15% breakout move Nov. 8, SunTrust retested key support near the October high. This area, just below $35, remains an important level -- but I doubt it will be tested again in the near term. Until SunTrust pushes well into overbought territory, the stock will have room to run. Shares are trading at its best level in three years, and they have a long way to travel before they retest the 2008 high at $70. I will be monitoring the $41.60 level for an upside target as a new bull leg develops. This was the area of a major low set back in 2000....84 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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