Colonial BancGroup, Inc. (NYSE:CNB)Q: Should I hold on to CNB? I value your opinion. Thank you.
A:We issued an Uptrend alert on CNB back on March 17 at 70 cents. Stock went as high as $2.20 since then but has since fallen back to support at 50 cents where it is trying to rally. There may be some resistance at the 50 and 200-day moving averages which are above at about the $1.00 level. The stock underperformed today which may be a concern and may have something to do with the news that it was closing some branches in Nevada which is worth further investigation. Our opinion is based on technical indicators, on which SmarTrend is based. Watch to be sure that it doesn’t fall below 50 cents again.