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PIK

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Posts: 228
Reply with quote  #1 
The regional banks held up well during the broader market sell off this week with KRE notching close to a 3% gain.  The attached chart is a 2 year weekly of KRE showing price testing key resistance levels for a third time.  Key moving averages are moving up within a large ascending triangle pattern.

Regional banks lagged the overall financial sector during 2009, but current technicals indicate a potential break out opportunity.  Currently this sector is fighting against the downdraft of last week while trying to chew through these key resistance levels, so some improvement in the overall market more than likely will be needed to raise the odds of achieving a break out.  If that occurs, KRE has the potential to outperform the broader market and start trending again with a price target in the 35-40 range.  Any pullback under the lows of last week on a closing basis will confirm the strength of the resistance levels and should be respected accordingly. 

(Hoping that the attached image displays OK)    


PIK







   


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PIK

TW Member
Registered:
Posts: 228
Reply with quote  #2 
Just a quick update, KRE has and continues to move out of its pattern towards its technical objective after barely holding the weekly lows of mid January (22.79 on a closing basis).  Technically, nothing weak here, with plenty of support below.

Also, the other 2 charts may not belong in the ETF section, but DD and GE are also exhibiting strong technical break out patterns which should continue to help the major large cap averages. 

(Don't know if the charts will show up in proper order, but you get the picture )


PIK




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