SPDR S&P Bank ETFShort
KBE the banking sector ETF trending in a channel
KBE the ETF for the banking sector has had increasing trading volumes since early March.
It was in a downtrend with the banking crisis apparently precipitated by the decreased value of
fixed yield bonds and treasuries as interest rates were raised. Things have since stabilized
with a pause in the rate increases in May. As seen on the 4H chart, KBE in early May reversed
and began to slowly rise in a parallel ascending channel and was about to pivot toward the
channel bottom at the support trendline. The RSI indicator shows RSI topping at 90 while
the zero-lag MACD shows the k /d lines crossing over the histogram.
Accordingly, I anticipate a trend down on KBE for one week suitable for a short trade.
The stop loss is immediately above the resistance trendline at 38.50 while the target is
35.70 with a reward to risk of approximately 3: 1. I anticipate a one week trade and
then will watch if price reverses in the channel. The red flag here is if the fed does not
continue the pause and instead raises interest by 25 basis points, this would impact
banks and so their stock prices imbedding into KBE.
It was in a downtrend with the banking crisis apparently precipitated by the decreased value of
fixed yield bonds and treasuries as interest rates were raised. Things have since stabilized
with a pause in the rate increases in May. As seen on the 4H chart, KBE in early May reversed
and began to slowly rise in a parallel ascending channel and was about to pivot toward the
channel bottom at the support trendline. The RSI indicator shows RSI topping at 90 while
the zero-lag MACD shows the k /d lines crossing over the histogram.
Accordingly, I anticipate a trend down on KBE for one week suitable for a short trade.
The stop loss is immediately above the resistance trendline at 38.50 while the target is
35.70 with a reward to risk of approximately 3: 1. I anticipate a one week trade and
then will watch if price reverses in the channel. The red flag here is if the fed does not
continue the pause and instead raises interest by 25 basis points, this would impact
banks and so their stock prices imbedding into KBE.
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