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Fins In The Shark Tank

ByDragonfly Capital
AuthorGregory W. Harmon
Published 04/29/2013, 02:39 AM
Updated 05/14/2017, 06:45 AM
BAC
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The financial sector showed many charts set up in a bearish Shark pattern this weekend. BY using the SPDR KBW Regional Banking Index ETF, KRE, below you can see how the shark sets up.

SPDR KBW Regional Banking Index ETF, KRE

KRE
Most Harmonic patters are ‘W’ like, and the Shark is no exception. From the initial point at 31.94 down to 30.19 it retraced to 31.60, but then fell back to 29.72. This is the critical leg to the Shark and needs to be between a 113% and 161.8% extension of the first leg down. This calls for a final push higher of 88.6% or 113% of the initial leg. It is at that point that the word Bearish kicks in. For KRE it reaches a 88.6% retracement at 31.34 and 113% at 32.14, both leaving some room higher. At that point you would look for a reversal candle lower to short for a 38.2% or 61.8% retracement of the entire pattern.

Regions Financial, $RF.
RF
Another example can be found in Regions Financial, RF. This one is already through the 88.6% retracement leaving the 113% to 8.53. There are many others in this sector in Shark Patterns including JP Morgan, JPM and Bank of America, BAC. Take a closer look yourself. If you are in in the sector, you may have “fins to the left, fins to the right and your the only bait in town.”

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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