Earlier this year, KRE broke above 2007 high levels. After breaking out, softness over the past few months saw KRE test 2007 high resistance levels as new support a few times at (1). While testing this support, potential that KRE has created a bull flag pattern over the past few months.
KRE short-term rally of late finds it testing falling resistance at (2), which could be the top of a bull flag pattern.
If KRE breaks out at (2) and climbs above old highs at the $58 zone, it could attract buyers on a breakout. An important breakout test is in play for KRE this week at (2). Bank Index (BKX) is testing an important breakout level as well. What KRE and BKX does in the next couple of weeks, could be very impactful for the banking industry and broad market overall.
The SPDR KBW Regional Banking ETF (KRE) was trading at $56.86 per share on Tuesday morning, down $0.26 (-0.46%). Year-to-date, KRE has gained 3.00%, versus a 14.01% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.