Why We're Watching Wells Fargo And National Bank Holdings
Michele Schneider | Apr 19, 2022 01:20AM ET
Earnings season is upon us and the banks have been kicking it off.
However, the kickoff has been weak as seen in the above chart of the SPDR® S&P Regional Banking ETF (NYSE:KRE).
With that said, if KRE can clear and hold over its 10-Day Moving Average on both price and our Real Motion momentum indicator, we could get a rally in the banking space.
Currently, Real Motion can be seen with the red dotted line sitting just under its 10-DMA at the bottom of the chart.
Last Friday, Wells Fargo (NYSE:WFC) reported earnings and is now having an inside day chart pattern.
Like KRE, WFC will need to clear over its 10-DMA in price and momentum.
If the 10-DMA can be cleared, the support area to hold is from $45.03 to $45.77 as seen by the black lines on the above chart.
While WFC reported Friday, National Bank Holdings (NYSE:NBHC) reported after Monday's close. The company missed on earnings and revenue. Depending on where NBHC opens on Tuesday, watch for it to clear the 10-DMA in price.
On the momentum side, it has already cleared the 10-DMA showing that momentum is leading price.
When it comes to risk on NBHC, a tight risk looks the best under Monday’s low around $37.93.
h2 ETF Summary/h2S&P 500 (SPY) 440 pivotal.
Russell 2000 (IWM) 195.88 to hold.
Dow (DIA) 343 pivotal.
NASDAQ (QQQ) 338 minor support.
KRE (Regional Banks) 66.85 to clear.
SMH (Semiconductors) 237 support.
IYT (Transportation) Watch to stay over 243. 239 support.
IBB (Biotechnology) 128 the 50-DMA could not hold.
XRT (Retail) Needs to clear 77.09 and hold.
GLD (Gold) Like this to hold over 181. More support from the 50-DMA at 179.59.
USO (Oil) 72.60 support.
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DBA (Agriculture) 22.39 to hold.
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