European Banks Look Bullish
Chris Kimble | Jan 25, 2017 10:33AM ET
Since last summer, the Power of the Pattern has been noting the importance of the price action in both the DAX (Germany) and European banks relative to the risk-on trade in the states.
Below looks at European Financial ETF (NASDAQ:EUFN)
Since the summer of 2015, EUFN has remained inside a very uniform falling channel (red shaded area). Late last year, EUFN broke above this falling channel and Premium Members hopped on the breakout. They sold into strength as it was nearing the top sideways channel (1).
Now EUFN is testing a key breakout level at (2). I think a breakout at (2) would send a positive risk-on message from this ETF and would also be a positive risk-on message to stocks in the states.
Full Disclosure: Premium Members do not own EUFN at this time. They do own a hard-hit bank in Europe, which has lost nearly two thirds of its value as a ripple play.
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