Are Regional Banks Turning Higher?

BATS:KRE   SPDR S&P Regional Banking ETF
Regional banks had a big surge in late 2023. Now, after a period of consolidation, some traders may expect further gains.

The first pattern on today’s chart of the SPDR S&P Regional Banking ETF is the falling trendline along the highs of January and early March. KRE is trying to clear that resistance, which may suggest a breakout is starting.

Second, price action has been very tight. Bollinger Bandwidth shows a potential volatility squeeze. Also notice how the 50- and 100-day simple moving averages (SMAs) are less than 1 percent away from each other. Will this narrow range of movement give way to a period of price expansion?

Third, the 200-day SMA has been rising since late December. That may reflect incipient bullishness over the longer term.

Next, the 8-day exponential moving average (EMA) has crossed above the 21-day EMA. That may reflect bullishness over the shorter term.

Finally, the low in early February represented a 50 percent retracement of the move between October 27 and December 14. Holding that area may confirm direction is turning upward.

Standardized Performances for ETF mentioned above:
SPDR S&P Regional Banking ETF (KRE):
1-year: +14.64%
5-years: -2.06%
10-years: +21.51%
(As of March 28, 2024)
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