Technical Analysis: US Banks outlook April 13, 2021 283

  • The US banks has been recorvering steadily after the COVID-19 sell down last March 2020.
  • The result of the low interest rate and expansionary fiscal policy in the United States has caused the banks to have additional pile of cash sitting in. The Fed has also lift the curbs on the banks to perform shares buyback
  • Technical indicate longer term bullish upside but the risk of mild correction remain.

 

 

The S&P 500 Financials sector index has once again broken the new high on 12th April 2021 Monday after prices breaks 586.40 resistance. Further technical indicate stronger upside going ahead as the Ichimoku indicators is showing namely i) Prices has been trending above Tenkan-Sen and Kijun-Sen. ii) Chikou-Span trending above the candles and the line recently breaks above the resistance at 586.40. iii) Senkou-Span A turns up strongly. Furthermore, prices has been trending upwards well within the uptrend line

 

Target resistance zone of 161.8% and 200.00% extension level of 549.35-586.42 is an attractive target

 

 

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About the author

Profile photo of Chua Wei Ren

Chua Wei Ren
Technical Analyst
Phillip Securities Research Pte Ltd

Wei Ren specialises in Technical Analysis and has 11 years of experience in studying classic technical price action. He also study and research extensively on Elliott wave theory, Dow Theory. He believes that history plays an important role in how the market is reflected in the future.

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