Technical Analysis for
KRE
Testing Double Top and 150 day moving average.
Banks are nearing a resistance level. The KBW Bank Index (BKX) and the SPDR S&P Regional Banking ETF (KRE) have both been on a strong upward trend in recent weeks, but they are now approaching their respective 150-day moving averages. These moving averages are important technical indicators, and they often act as resistance levels.
If the BKX and KRE break above their 150-day moving averages, they could continue to move higher. However, if they fail to break above these levels, they could pull back and consolidate.
For those with quick profits, it may be a good idea to take the money and run. The risk of a pullback is increasing as the BKX and KRE approach their 150-day moving averages.
The circumstance at present for each (the BKX and KRE) can be characterized as “a rally to a difficult level where overhead supply comes into play”. This means that there is a lot of selling pressure at these levels, and it could be difficult for the BKX and KRE to break through.
If you are still bullish on banks, I would recommend waiting for a pullback before buying. This would give you a better entry point and reduce your risk.
KRE
Testing Double Top and 150 day moving average. Banks are nearing a resistance level. The KBW Bank Index (BKX) and the SPDR S&P Regional Banking ETF (KRE) have both been on a strong upward trend in recent weeks, but they are now approaching their respective 150-day moving averages. These moving averages are important technical indicators, and they often act as resistance levels.
If the BKX and KRE break above their 150-day moving averages, they could continue to move higher. However, if they fail to break above these levels, they could pull back and consolidate.
For those with quick profits, it may be a good idea to take the money and run. The risk of a pullback is increasing as the BKX and KRE approach their 150-day moving averages.
The circumstance at present for each (the BKX and KRE) can be characterized as “a rally to a difficult level where overhead supply comes into play”. This means that there is a lot of selling pressure at these levels, and it could be difficult for the BKX and KRE to break through.
If you are still bullish on banks, I would recommend waiting for a pullback before buying. This would give you a better entry point and reduce your risk.