KRE pushes through Monday's high
SPDR S&P Regional Banking (KRE) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, KRE ended the month 0.55% higher at 38.39 after gaining $0.95 (2.54%) today on low volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 37.86, SPDR S&P confirmed its breakout through the previous session high after trading up to $0.76 above it intraday.
Daily Candlestick Chart (KRE as at Jun 30, 2020):
Tuesday's trading range has been $1.65 (4.44%), that's below the last trading month's daily average range of $1.88. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for KRE. Prices continued to consolidate within a tight trading range between 35.75 and 38.62 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 37.46 (now S1), which is likely to act as support going forward. The last time this happened on June 25th, KRE actually lost -6.09% on the following trading day.
The ETF shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for SPDR S&P. Out of 408 times, KRE closed higher 54.90% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 54.17% with an average market move of 0.30%.