Citigroup Inc (C), Capital One Financial Corp. (COF): Hate Bank Fees? Own Any Bank Stocks? Read This Now

The study ranked the most vulnerable banks in this order:

This list indicates that Citigroup Inc (NYSE:C) scored the worst in terms of the Brand Vulnerability Index. This means Citibank is expected to lose the most in deposits over the next year. TD Bank scored the best, meaning TD would be the least negatively affected by consumer frustrations and shifting deposits. In other words, TD has the least consumer dissatisfaction among the banks on the list, and Citibank has the most.

A look at the technical picture of Citibank reveals a near-perfect double top on the daily chart at $53. Price is descending from the far right top; support exists in the $45 range. Given the BVI ranking and the bearish chart pattern, I would avoid this stock unless resistance at $53 gets taken out on a daily close.

Choosing Capital One Financial Corp. (NYSE:COF) as an example of the middle of the BVI rank, it has been trending strongly upward since mid-April. However, resistance has been hit in the $69 range. This is a very bullish chart pattern and buying on a daily break out close above $69 makes technical sense.

Not surprisingly, the best-ranked bank on the BVI shows the most bullish chart pattern. Toronto-Dominion Bank (USA) (NYSE:TD) has also been trending sharply upward since June 24. The chart says there is more upside to go thus buying now at $86 makes sense.

Risks to Consider: The BVI study is only a snapshot of consumer banking sentiment. It should not be used by itself as a decision tool. In addition, the numbers cited are projections, and not fact. Regardless of the issues, the study does provide a starting point and guidance for starting your own research. Always consider the current fundamental and technical picture of stocks you’re thinking about buying. In addition, always use position size and stop-loss orders properly.

Action to Take –> With reference to the technical picture and the BVI study, avoiding Citibank and buying TD Bank makes sense right now.

P.S. — Banks might soon have a lot more than upset customers to worry about. Apple just made a little $256 million move that could have huge consequences on your wallet. Click here to find out how the tech giant is threatening the entire banking industry.

– David Goodboy

The article Hate Bank Fees? Own Any Bank Stocks? Read This Now originally appeared on StreetAuthority and is written by David Goodboy.

David Goodboy does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC does not hold positions in any securities mentioned in this article.