KRE Regional Banking ETF Daily and Weekly Charts

The weekly chart shows the collapse out of the H&S (head and shoulders) pattern that Keystone previously pointed-out. The head of the H&S is 76 and the neckline is at 57 so that is a difference of 19 so the downside target is 38 if the 57 fails. It failed in a big way when the Silicon Valley Bank and others collapsed. Stupid rich kids, from wealthy families that took advantage of the US rigged crony capitalism system to become filthy rich over the last five decades, think they are smart, but they're not. They are stupid rich kids.

The KRE daily chart is ready to run higher on the daily basis due to the bullish falling wedge and the universal positive divergence across all chart indicators (green lines). The bottom standard deviation band was violated so the middle band at 44.06 and dropping sharply is on the table (this may drop to 43.50-44.00 as price comes up to meet it).

The KRE weekly chart, however, remains bearish. The RSI and stochastics are oversold wanting to see a bounce on the weekly basis. Ditto the possie d displayed by the RSI, stochastics and money flow. These positive metrics will combine with the happy possie d on the daily chart to create the rally on the daily basis.

However, after the regionals rally for a few days, they should slump back over due to the weak and bleak MACD and histogram in the weekly timeframe. Remember, the downside target for the H&S at 38 is not yet attained. 

KRE should pop this week on the daily basis but on the weekly basis, price would be expected to roll back over to the downside to 37-39 where a bottom can be placed on the weekly basis (a multi-week rally would then begin). Lots of drama is on tap this week.

Bank earnings are released this week so all eyes will be focused on the financials. Obviously, earnings and other news bites may impact the analysis above but simply modify the forecast, if necessary, depending on the chart adjustments that occur after news hits the wires. Keystone does not have a position long or short in KRE and is not trading the banks or its derivatives currently. 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.

Note Added Friday Morning, 4/14/23, at 6:18 AM EST: Bank earnings are imminent. The regional banks behave themselves this week waiting for the earnings numbers over the coming days. KRE sits at 43.15 up +1% on the week call it flat. The stochastics on the weekly chart still want to see a lower low in price in the weekly time frame. Keystone's 80/20 Rule says 2's lead to 8's on the way down, so a loss of 42 opens the door to 38. The KRE daily chart shows long and strong RSI, histo, MACD and stochastics so some higher highs in price are expected in the daily time frame.