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Can We Bank on KRE?

Let's check the charts of this exchange-traded fund to see if the regional banks are signaling a move higher?
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A Real Money subscriber noticed that the SPDR S&P Regional Banking exchange-traded fund  (KRE)  made a new high, and emailed me for a strategy.  

In this daily bar chart of KRE, below, we can see that the price of this ETF has traded sideways to higher the past 12 months. KRE just made a new high for the move up and is trading above the rising 50-day moving average line as well as above the 200-day line. The On-Balance-Volume (OBV) line turned up in early December, but it is not at a new high like prices are. The Moving Average Convergence Divergence (MACD) oscillator has improved recently as is above the zero-line for a new buy signal. 

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In this weekly Japanese candlestick chart of KRE, below, we see a positive-looking picture. Prices are in a longer-term uptrend above the rising 40-week moving average line. The weekly OBV line has been strong since early 2020 but it needs to make a new high of its own to confirm the price gains. The Moving Average Convergence Divergence (MACD) oscillator is very narrow and close to a crossover. 

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In this daily Point and Figure chart of KRE, below, we can see the recent new high and a $96 price target. 

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In this weekly Point and Figure chart of KRE, below, we can see a $103 price target. 

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Bottom line strategy: Traders could go long KRE at current levels risking to $71. The $96-$103 area is our price target. 

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