Ireland’s Central Bank announced that AIB and IRE have passed the Pan-European stress test and investors were pouring into these two stocks on Friday!
In 2008 Allied Irish Banks plc (NYSE: AIB) was selling for around $300, which means AIB is currently trading almost 100% down from its 5-year high! AIB, like almost every other banking stock fell to an all time low back in March 2009. It has been struggling to make a net income ever since 2009, but AIB still has almost $195 BILLION in Assets!
The Bank of Ireland (NYSE: IRE) shares traded as high as $1.42 and since my recommendation you could have made a possible 67% from Thursday’s low to Friday’s high! IRE closed up more than 40% at $1.22 on Friday, but is still down a whopping 98% from its 5 year high of about $98 … This news could be the sign everyone has been waiting for to get in on a possible reversal play!
The Bottom Line
With these two Irish Banks passing the Euro Stress Test, investors are taking that as a possible sign for a reversal trend! There is no question that these stocks have taken furious beating over the past few years and even though they are nationalized, there still could be a lot of room for profit. Pay attention to the moving averages and resistance levels, even though these banks are similar they are still different. My personal favorite of the two is IRE, but AIB is currently looking like the better investment as it has more room to move!
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