Pacific Capital Bancorp (NASDAQ:PCBC)
A:After PCBC broke below its 50-day moving average, SmarTrend issued a Downtrend alert on 5/1/09 @ $6.52. The stock continued to fall and, as you said, has finally appeared to have found some support at current levels. With the stock so far below moving averages, PCBC has some work to do before we can consider the possibility of a new Uptrend. As you know, trend trading systems do not time bottoms (because you don’t know for sure that it is done going down) and so we need confirmation that the stock is going to move back up. That 50-day average, now at $4.44, will be the next resistance point so we’d like to see it start to make its way toward that level, if it can. Regional banks have had issues during this credit crisis and so investors are likely looking to see when PCBC will start to turn the corner. Look for some news next week when the company reports earnings on the July 23rd.