KRE a banking sector ETF for regional banks LONGWhile tracking regional banks KRE had a bad time in the spring with the
small and regional bank failures/rescues and the federal actions to buttress the faith of
citizens in them. There have been no runs on the banks. Larger banks may be taken
some business from small banks saddled with securities with diminished
value due to rising interest rates and the effect on the face value of those
fixed-rate securities. No matter, things are better now. This is not to say
the whole banking sector stress is resolved. Banks have enjoyed great
returns on credit cards. The 15-minute chart here shows a good overall
uptrend within ascending parallel support and resistance trendlines.
Price is presently at the bottom of that parallel channel. The relative
trend index signal shows bearish trending today providing confirmation of
of a dip which is now available as an entry point. Relative Strength Indicator
which compares with the SPY showing persistent strength
Overall, I see this as a good entry point for a long-swing trade targeting
the top of the channel which I estimate will be about 52 by the
end of next week estimating the trade duration to be 5 trading days.
My reasonable opinion is that next week's volatility will be far less than
this past week and that DPST will do well. I will also take a look at
the KRE and KBE ETFs. I like this as a long setup with a 15% potential
for a very low risk in a stop loss set $.50 below the channel at 47.84
I have uploaded a similar idea on DPST.
