Wait for a Pullback, Then Go Long on Sterling Bancorp
Divergence is not yet a problem for bulls, but it needs to be monitored going forward.
This seems to be the day to cover financials. A rally in the shares of Sterling Bancorp (STL) has gone vertical, and new longs should wait for a pullback into the $16.00 to $15.50 area before venturing into the long side.
Things come together nicely in the chart of STL above. The price is above the rising 50-day and 200-day moving averages. The On-Balance-Volume (OBV) line is positive, as is the Moving Average Convergence Divergence (MACD) oscillator.
All our indicators look constructive in the chart of STL above, but the OBV is not moving up, yet, to confirm the price strength. This divergence is not yet a problem for bulls, but it needs to be monitored going forward.
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