Regional Banks Test Breakout Level

Published 10/03/2017, 11:33 AM
Updated 07/09/2023, 06:31 AM

Assets in rising trends often create a bullish-flag pattern. Below looks at KRE's price pattern over the past decade, pointing out that a bull flag pattern could be in play.

SPDR S&P Regional Banking ETF

Earlier this year, KRE broke above 2007 high levels. After breaking out, softness over the past few months saw KRE test 2007 high resistance levels as new support a few times at (1). While testing this support, KRE encountered a possible bull-flag pattern over the past few months.

KRE's recent short-term rally finds it testing falling resistance at (2), which could be the top of a bull-flag pattern.

If KRE breaks out at (2) and climbs above old highs at the $58 zone, it could attract buyers on a breakout. Am important breakout test is in play for KRE this week at (2). Bank Index (KBW Bank) is testing an important breakout level as well. What KRE and BKX do in the next couple of weeks could impact the banking industry and broad market overall.

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