Stock Chart KRE

Posted by downtowntrader | 10/06/2008 09:41:00 PM | 0 comments »

Stock Chart Analysis KRE

SPDR KBW Regional Banking (ETF) (Public, AMEX:KRE)

Wow, I finally have a chart to post. I've been looking for capitulation in the markets before putting some money to work on some swing trades, and today may of marked the low for the current leg down. Most charts are complete disasters right now, so there isn't much to get too enthusiastic about. Also, in the current environment, any negative news is absolutely crushing individual stocks. For both of these reasons, I feel more comfortable sticking with ETF's.

Tonight's chart is KRE, which is an ETF covering Regional Banks. Many regional banks such as BB&T have been doing quite well, and have kept the most of the financial indexes from making new lows in spite of the disasters in LEH, WM, and WCB.

KRE has been making higher highs and lows over the past few months, and just recently challenged it's 200 day sma. I highlighted the interaction with the 200 sma on the chart below. Notice how the 200 day sma repealed it a couple times, before KRE was able to clear it. Once it cleared the average, it came back and confirmed it as support. The breakout stalled and it's now back for another retest of support. It has found buying in this area over the past week, and could be ready for a move to the upside. I much prefer to take a shot on something like this that has shown strength, then trying to cherry pick a bottom in a crashing individual stock.

Good Trading,


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