Site Meter The Lawyer Trader: Keep An Eye On Regional Banking (KRE)

Saturday, August 15, 2009

Keep An Eye On Regional Banking (KRE)

This one is definitely worth keeping on your radar screen. Here's the chart:I love trading breakouts from a bull flag pattern. I don't follow too many chart patterns, but I consider flags to be worth paying attention to. When stocks run up in price, like what just occurred with KRE, the stock sometimes enters a tight congestion pattern as it recharges its batteries. This congestion is the "flag" pattern and breakouts after the flag pattern tend to have a higher chance of being a true breakout that is worth trading. It's like a coiled spring that is suddenly released.

Be ready to jump in if this stock breaks out above that upper line of the flag pattern.

TLT

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