The SPDR S&P Regional Banking (NYSE:KRE) has formed bearish "Megaphone Top" chart pattern.
I expect the stock price may fall from the close of $55.42 to the range of $52.80 - $53.30.
The pattern formed over 27 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.
The recent broadening action tells us that trading has been out of control, but a breakout on the downside suggests we're starting a more decisive downtrend. With its broadening price swings, the Megaphone represents a market that's unstable and out of control. It typically consists of two successively lower lows between three higher highs, and the reversal signal occurs when the price breaks down below the second trough (the lowest lows) as a sign of a more decisive bearish move.
