As the economy continues to slide, regional banks are failing at an alarming rate. So far, in 2010, 109 banks have failed. This brings the total number of bank failures since 2007 to 277.As a result, many regional banks provide excellent shorting opportunities. California-based East West Bancorp (NYSE: EWBC) is one such candidate.
The holding company for East West Bank, EWBC offers a full range of personal and business banking deposit and loan services. Although the company has thus far managed to maintain profitability, this picture may be about to change.
EWBC appears technically vulnerable. The stock is in an intermediate-term downtrend and falling. It is currently testing an important resistance zone between $14.10 and $15.00. (more)
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