CAIXABANK: Approx. #Bearish #batpattern on its way & Q2 earnings

The bank's results are due on July 24th. JP Morgan and Wells Fargo saw sharp declines on profits (-51% and -71% respectively) yesterday and I expect Spanish banks will be unable to avoid them too. Besides, CABK has been the bank who's best performed in the short-term post-covid era, so we could expect bigger downward corrections than those in Santander or BBVA once their results come in. Barclays "saves" CABK and SAN's rating but still forecasts a -52% decline on profits for the sector although in my opinion, I expect -60% minimum.

From the technical point of view, an approximated bat pattern is being formed and its figure may be ended either today or tomorrow at level 2.10-2.12. Once it is completed, the bank's share price may drop towards 1.80 level (0.5 Fib level) or 0.382 Fib livel (1.878) in case earnings readings are better than expected.