Soveregn Bancorp (SOV) 10/9/2006

[Harry Aloof]

From Wall Street Trader's Column

SOVEREGN BANCORP (SOV) NYSE
Report No. 2192 Analysis by: Harry Aloof OCTOBER 9, 2006

SOVEREGN BANCORP (SOV-NYSE): Technical Viewpoint: From a low of $20.01 on Sep 8, 2006 prices rallied, reaching a high of $21.88 on Sep 14, 2006. A decline saw prices pull back, reaching a low of $21.20 on Oct 3, 2006. Another rally saw prices penetrate resistance line "A", closing 10/5/06 at $24.10. Technicals: MACD-Histogram (MACD-H): A Buy Alert! was given on Oct 6, 2006 when the Histogram crossed the "0" line to the upside. Support: Remains at $18.50. Resistance: Is at None at current levels. Point & Figure: Reversed to the upside on Mar 21, 2006. A P&F downside reversal takes place at $21.00. Summary: Technical indicators have turned bullish. BUY! SOVEREGN BANCORP (SOV-NYSE) @ $24.50 Stop: Use a protective stop of $22.50. SOVEREGN BANCORP is currently trading @ $24.10 plus $2.50 on Oct 6, 2006.

Price Objective: $37.50
Risk/Reward: $2.00 VS. $13.00
Risk/Reward Ratio: 6:1

Three Part Technical Chart