Sunday, November 10, 2013

KRE Regional Banks Weekly Chart Rising Wedge Overbot Negative Divergence Price Extended

KRE has upside momo as traders rush into the banks due to the steepening yield curve, and many figure the regional banks are better plays than the larger too-big-too-fail investment banks. The red rising wedge, overbot RSI and stochastics and negative divergence across all indicators says down is more likely. Since KRE did receive a lot of mojo last week, and the short green lines for RSI and MACD hint at a bit more near-term juice on tap, price may want to play around at these levels for a week or three. The blue dots show how price is extended well above the moving averages requiring a mean reversion (lower prices). This is interesting since the talking heads are telling everyone to buy the banks with both hands. Projection is sideways to sideways lower prices moving forward. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

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