Banks Are Testing Triple Breakout
Chris Kimble | Dec 08, 2016 10:10AM ET
Most quality rallies in stocks have historically taken banks along for the ride. Up until a couple of months ago, banks had been a disappointment to many, lagging the broad market for the prior 18 months.
Below looks at the Bank Index KBW Bank over the past decade, revealing why we think that banks have an important “Breakout Test” in play at this time.
The Bank Index has remained inside of a rising channel since late 2009. The index looked to have formed a pennant pattern, creating a series of higher lows and lower highs. When the index broke out, Our members bought Financial ETF (NYSE:XLF) at (1) back in August.
The Bank Index now appears to be testing a “Triple Breakout” price zone at (2), which is currently in play.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.