A Trip To The Bank May Be Needed After This Banking Trade

As of this morning, after a key piece of inflation data dropped, the markets seemed to have resumed their move higher with the usual suspects leading the charge. However, even though tech is leading the way, we want to analyze a trade for a sector or industry that appears ready to follow closely behind.

It is an industry that has been battered ever since the banking crisis from earlier in the year. This drastic drop in prices has opened the door for investors to pile back in with alacrity. That industry is the regional banking area of the market. Let’s take a look.

SPDR S&P Regional Banking ETF (KRE)

Although we admittedly won’t be doing much with this ETF until we get closer to 45, getting prepared for that move now can help you better execute on your plan when the time comes. Over the past three months, the ETF’s price has remained pretty congested around current levels, but if the stock can break through its resistance around 45, then the stock could be primed for a move higher.

A break of this level could come with a retest as investors try to figure out if this is the correct price or not. For traders, this could be a good point of entry, but notice, we aren’t trading on expectations of what we think is going to happen, we are simply making contingency plans should this price come back into play.

While we acknowledge this price is a long way off from where…

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