Banks Are Breaking Out Of Recent Basing Pattern (KBE)

From Chris Kimble: Since the first of this year, banks didn’t have much to brag about, as they lagged the broad market to the upside. While lagging, they potentially built a base that could reward the owners of banks for a while going forward.

Below looks at the Bank Index (BKX) over the past 6-years:

Potential that the sideways choppy action in the BKX index this year was an upper-level base to spring higher off of.

This week the BKX index broke out to the upside at (1), which is bullish price action for this key sector.

Full Disclosure- Premium Members are overweight this key sector since the lows earlier this year, they own XLFC & GS.

The SPDR KBW Bank ETF (KBE) closed at $45.29 on Friday, up $0.02 (+0.04%). Year-to-date, KBE has gained 4.81%, versus a 14.85% rise in the benchmark S&P 500 index during the same period.

KBE currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #3 of 36 ETFs in the Financial Equities ETFs category.

This article is brought to you courtesy of Kimble Charting Solutions.