The 15-minute chart for Royal Bank of Canada recently triggered a MACD Death Cross, RSI Overbought, and KDJ Death Cross, which occurred on August 27, 2025 at 13:15. This suggests that the stock's price has the potential to continue falling, as it has risen rapidly and surpassed its fundamental support levels. Furthermore, the momentum of the stock's price has shifted towards the downside and may continue to decrease.
Royal Bank of Canada (RBC) reported its Q3 earnings on August 27, 2025, with a 1.7% increase in US pre-market trading. The bank's diverse business segments, including Personal & Commercial Banking, Wealth Management, Investor Services, Capital Markets, and Insurance, contributed to the overall positive performance. Key highlights include a record net income of $5.4 billion, a 21% increase from the prior year, and diluted EPS rising to $3.75, up 21% over the same period [1].
Segment-wise, Personal & Commercial Banking saw a net income increase of $352 million or 22% year-over-year, driven by higher net interest income and non-interest income. Wealth Management grew by $147 million or 15% year-over-year, primarily due to higher fee-based client assets and net sales. Insurance reported a net income increase of $77 million or 45% year-over-year, driven by improved life insurance claims experience and lower capital funding costs [1].
RBC's capital position remains robust, with a CET1 ratio of 13.2%. The bank returned $3.1 billion to shareholders through common share dividends and share buybacks. The PCL on loans ratio of 35 bps increased 8 bps from the prior year, reflecting higher provisions in some segments [1].
Despite the strong earnings report, RBC's stock has been experiencing significant downward pressure, as indicated by a series of bearish signals on its 15-minute chart. A MACD Death Cross, RSI Overbought, and KDJ Death Cross were triggered on August 27, 2025, at 13:15, suggesting a potential continuation of the downward trend [2].
Analysts have provided mixed signals regarding RBC's stock. While some maintain a "Moderate Buy" rating, others have expressed caution. Raymond James Financial downgraded the stock from a "moderate buy" to a "hold" rating, indicating a more conservative outlook [3].
Investors should closely monitor RBC's stock performance and be prepared for potential downward movements. The narrowing Bollinger Bands and bearish indicators suggest a continued downward trajectory [2].
References:
[1] https://www.ainvest.com/news/royal-bank-canada-reports-q3-earnings-shares-rise-1-7-pre-market-2508/
[2] https://www.ainvest.com/news/royal-bank-canada-15-minute-chart-shows-bollinger-bands-expanding-downward-2508/
[3] https://www.marketbeat.com/instant-alerts/synovus-financial-nysesnv-rating-lowered-to-hold-at-raymond-james-financial-2025-07-29/
Comments
No comments yet