Banks About To Get Fried? Possible If This Gives Way

Published 06/18/2020, 03:32 PM
Updated 07/09/2023, 06:31 AM
XLF
-

Are banks about to get fried? They sure could if current support fails to hold.

This chart looks at Financial ETF (NYSE:XLF) from Marketsmith.com on a weekly basis over the past 7-years.

XLF has remained inside of bullish rising channel (1) for the past 5-years. Weakness took it below the bottom of the channel during the February/March declines.

The rally over the past 90-days saw XLF kiss the underside of the rising channel at (2), where it created a bearish reversal pattern.

Since the March lows, XLF could be forming a bearish rising wedge, with the bottom of the wedge being tested as support this week at (3).

Could Banks get fried again? If support breaks at (3), look for underperforming banks, to outperform the broad markets on the downside.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.