Each week, I’ll give an overview of a stock and Licia Leslie will follow that up with a chart analysis the next day. Bill Griffo will chime in with macro analysis and Andrew Giovinazzi will then finish out the week with a volatility breakdown.

Have a stock YOU want us to review? Email my team here. – Mark

Hey Traders,

Now that we know what went wrong with supervision at Silicon Valley Bank, we have a bit more insight into regulatory changes coming to other banks.

According to Morningstar, there are still no official new regulatory proposals, but any changes would be phased in over a period of several years.

This removes the need for Fifth Third Bancorp (Ticker: FITB) to raise capital so current prices may be discounted more pain then is required.

Today, we’ll take a look at the chart pattern to determine the right place to buy.

There are two metrics that indicate FITB offers value here: a $.99 Price to Book and a 5.6% dividend distribution.

Plus, their fair value price is $38, which offers a 38% discount to the current price ($23.62).

Let’s Take a Look at Their Technical Set-up

FITB is down 55% from its high and 40% from the Silicon Valley Bank failure … 

It’s close to being oversold on a monthly time frame and also within striking distance of its 200 dma.

I’m a buyer of the stock below 420 and would consider selling a put spread before it reaches that level.

Now that we know the Fed is in pause mode, FITB is a great buy. Although, we do have to keep in mind a debt ceiling crisis that could cause panic selling in the weeks ahead.

Therefore, I would want to see a capitulation trade below $20 to have enough cushion from a further drop.

The real value is the possibility of owning shares and capturing a 5.6% dividend while having a chance to reap 20% in price gains.

Banks are a great business if they are run correctly – and Fifth Third is.

Live and Trade With Passion My Friends,

Bill Griffo