Possible inverse head & shoulders pattern on BB&T
Regional banks have gotten hit pretty hard after the latest Fed meeting. With the Fed announcing plans to keep the Fed Funds rate at the current level for the foreseeable future, it hampered banks to a degree.
When interest rates are rising, the spread grows between what banks charge on loans and what they pay on deposits. This helps banks and their profitability. With the Fed becoming more dovish, the spread is likely to remain stable or possibly even decrease for the rest of the year.
The SPDR S&P Regional Bank ETF (NYSE: KRE) has been lagging the overall market since the January Fed meeting. At that meeting, the Fed used more dovish terms to describe the rate policy. The announcement after the March meeting left little doubt about the path the Fed intended to take going forward. After that meeting, the KRE fell over 11% in three days.
One regional bank that caught my eye was BB&T (NYSE: BBT). The weekly chart shows a possible inverse head and shoulders pattern forming. The stock dipped down to the $44.50 level back in the fall and then rallied up to the $52 area. This formed the left shoulder and neckline. The stock then fell to almost $4o to form the head. The stock rallied back to the $52 area to form the right side of the neck and has now fallen back down to the $44.50 area to form the right shoulder.
For the formation to be completed, the stock would need to rally back to the $52 level and breakout from there.
From a fundamental perspective, BB&T has decent measurements. The earnings have grown at a rate of 12% per year over the last three years and grew by 25% in the most recent quarter. Sales have grown by 7% per year over the last three years and they grew by 8% in the last quarter.
The profit margin is well above average at 32.4% while the ROE is average at 11.2%.
Momentum Indicator for BBT turns negative, indicating new downward trend
BBT saw its Momentum Indicator move below the 0 level on October 16, 2025. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 84 similar instances where the indicator turned negative. In of the 84 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
BBT moved below its 50-day moving average on September 19, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for BBT crossed bearishly below the 50-day moving average on September 22, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 21 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BBT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
BBT broke above its upper Bollinger Band on October 14, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for BBT entered a downward trend on October 09, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator entered the oversold zone -- be on the watch for BBT's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 51 cases where BBT's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for BBT just turned positive on September 22, 2025. Looking at past instances where BBT's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BBT advanced for three days, in of 301 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.563) is normal, around the industry mean (1.103). P/E Ratio (11.106) is within average values for comparable stocks, (20.352). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (3.184). Dividend Yield (0.055) settles around the average of (0.037) among similar stocks. P/S Ratio (2.381) is also within normal values, averaging (5.078).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. BBT’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BBT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 52, placing this stock worse than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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a major bank
Industry RegionalBanks