Banks About To Send One Of Most Important Messages In Years

European Bear Market Rallies Peaking Here?

Bank Index Chart.

Bank Index Chart.

The saying “so goes the banks, so goes the broad market” is about to experience a big-time test.

This chart looks at the (BKX) on a monthly basis over the past  eight years. Since 2015, the 78 price zone, reflected by line (1), has been tested as support and resistance.

Since the March lows by banks, the index has struggled to move above the resistance zone and its 38% retracement level at (2). While testing the underside of this area, banks have created a few bearish reversal patterns over the past  six months.

Even though banks have struggled to move higher over the past few months, the same cannot be said for the broad markets. Does that mean the saying, “so goes the banks, so goes the broad market” no longer applies?

Regardless, if the saying remains true, how banks handle the resistance zone and its 38% Fibonacci retracement level at (2); will most likely send one of the more important messages to the broad market in years.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Chris Kimble

Leave a Reply

Your email address will not be published. Required fields are marked *

About us

InvestLab is a financial services technology company focused on the global trading market. Founded in 2010 in Hong Kong, the company develops trading, market data, and social research products that enable individual investors and small to mid-size brokers to access global markets. We provide brokers and financial institutions cross border capabilities for retail investors into 43 markets globally.