Is it time to short the big banks with BNKD again?
As shown on the 4H chart BNKD, a triple leveraged ETF inverse to big bank stocks has had
ups and downs reflecting the chaos in the banking system with some failures and federal support
or takeovers. Online banks are thriving while some smaller regional banks are challenged with
a portfolio of bonds and treasuries bearing low yields. Price is presently at the same level
as the high of December 22 and low of April 23. This level is acting as support also allowing for
a narrow stop loss for a long trade. Price is below the high volume area of the long term
volume profile which equates to the fair value area. Accordingly, BNKD is oversold and
discounted below fair value into the undervalued range. It is below the mean anchored VWAP
line and in the area of one standard deviation below that line. The zero-lag MACD shows an
early impending cross of the lines under the histogram another suggestion of a reversal
I will take a long trade with the stop loss directly below the horizontal support line by
$ 0.25 while the first target just below the confluence of the POC line and the mean VWAP
@ $.13.90 while the final target is $ 15.60 near the top of the high volume area. I see this
as a safe long trade with a high R:R and profit potential.
ups and downs reflecting the chaos in the banking system with some failures and federal support
or takeovers. Online banks are thriving while some smaller regional banks are challenged with
a portfolio of bonds and treasuries bearing low yields. Price is presently at the same level
as the high of December 22 and low of April 23. This level is acting as support also allowing for
a narrow stop loss for a long trade. Price is below the high volume area of the long term
volume profile which equates to the fair value area. Accordingly, BNKD is oversold and
discounted below fair value into the undervalued range. It is below the mean anchored VWAP
line and in the area of one standard deviation below that line. The zero-lag MACD shows an
early impending cross of the lines under the histogram another suggestion of a reversal
I will take a long trade with the stop loss directly below the horizontal support line by
$ 0.25 while the first target just below the confluence of the POC line and the mean VWAP
@ $.13.90 while the final target is $ 15.60 near the top of the high volume area. I see this
as a safe long trade with a high R:R and profit potential.
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