XLF is yet again in a rising wedge. It seems financials like rising wedges :)
XLF is rising on lower volume which is very bearish, especially after such a strong drop which indicates more pain to come. RSI did recover after oversold territory. Everything is set for JPM report tomorrow.
If the rising wedge falls out, first target is blue dotted line and if that...
The recent selling volume of XLF is surpassed only by the COVID lows of 3/20 (purple circles). XLF currently is showing a little flag at a Gann confluence point (right yellow circle) and at a pivot point from pre-COVID (left yellow circle). RSI trend is negative, although it has retraced off an RSI(12) oversold level. If XLF falls from here, it will have formed a...
Went oversold into a range that has been supported twice in the last year. Latest low is higher than the last, & the current channel looks bullish. Obviously banks are in trouble but I think we get a cash injection pump to at least the $33.57 fib. This is a risky play, but the TA supports it. A small position wouldn't hurt! Best of luck & God bless!
Since 2012 200 WMA has provided support with the exception of 2020 covid crisis. Its testing 200WMA again. Can it still provide support this time around?
When you look at the chart in detail over the year this is something the average eye should have seen anyways... Long story short, the banks always bounce back... looking for some bottom here and strong buying from retail and large institutions and a bounce back into the end of year... remember BAC was $20 in 2020 and went the distance with issues...
XLF was for some time in a bullish and bearish mode opportunity. There were chances for bulls as it was close to triggering the bullish reversal pattern, the inverted head, and the shoulder, but it failed. On the other side, bears did have their reversal pattern, a rising wedge that was broken yesterday, triggering a sell signal. This is a zone/situation in which...
There is a common misconception that higher rates are bullish for banks. This is wrong! Banks make money
on a spread between short-term bonds 2yr or less and loan out at 10 years or more. Thus when the yield curve
collapses as it is doing right now. Bank profits are dwindling as there is less margin for risk-taking when making loans.
Dec. 3rd I posted this chart...
- 7.5% move on QQQ/NASDAQ in 4 days. AAPL and MSFT now hitting key resistance, will be watching to see if it can break above or not for QQQ to continue.
- likely a slight pullback hourly consolidation for QQQ before attempting another leg up.
- after ECB hiked 0.5% this morning our rate hike of 25Bps increased to 80% chance this morning.
- XLF hourly bullflag...
The past week’s selloff in banks has inflicted some punishment on the broader financial sector. But how severe is it? Will the crisis become an opportunity for patient buyers?
Today’s chart of the SPDR Financial Select Sector Fund might help answer those questions. It uses weekly candles to help provide a long-term perspective.
The main pattern with potential...
To be honest i don't know where XLF will go from here. With my current skill level and studies, I think we can go a little more lower. What do you guys think? Comment Below
In case you're wondering what caused the tank today, financials led the way.
Unfortunately, I don't think SI will be the only bank to go under, I think this is just the beginning. We're going to see banks go under because they lent money to garbage companies at low rates. A lot of these companies are gonna go bankrupt, like BBBY, W, PTON, AFRM, etc and as they...
I want to be careful not to pile on amid the selloff that has taken place in the last couple trading sessions.
The point here is that bank stocks look unhealthy overall. I am looking at banks to continue to selloff, until otherwise noted.
Be careful! Short the rip!
If you notice , late Friday banks like JPM and WFC started to catch a bid.
Part of the reason for dip buying was that XLF bounced off .618 at 32.45.
XLF is oversold on the daily but no where near as bad as XLV.
Technically we are as oversold now as we're back at October lows on the daily chart.
Unless we break 32.45 , nit a good idea to short banks ......
