Navigating the Banking Sector: A Close Look at XLF, SCHW, and ING

As a savvy investor, you understand the importance of analyzing key market indicators before making any financial decisions. Today, we're delving into the banking sector, specifically exploring the XLF ETF and two prominent banking giants, SCHW and ING. By the end of this blog, you'll have a clearer picture of the potential trading opportunities within this dynamic sector. My name is Meta Matt, and this blog is a breakdown of our in house Analyst Jay’s breakdown of the Banking Sector from his Thesis (which can be found on our FREE Trading Discord).

August 26, 2023
Meta Matt

As a savvy investor, you understand the importance of analyzing key market indicators before making any financial decisions. Today, we're delving into the banking sector, specifically exploring the XLF ETF and two prominent banking giants, SCHW and ING. By the end of this blog, you'll have a clearer picture of the potential trading opportunities within this dynamic sector. My name is Meta Matt, and this blog is a breakdown of our in house Analyst Jay’s breakdown of the Banking Sector from his Thesis (which can be found on our FREE Trading Discord).

XLF ETF: Mapping the Monthly Levels

Let's kick things off by dissecting the XLF ETF, represented by ticker symbol XLF. In the world of finance, it's essential to identify key monthly levels to make informed trading decisions.

Currently, XLF finds itself navigating within a bearish monthly fair value gap, with its boundaries set between 33.53 and 35.26. These levels are crucial in determining the ETF's near-term direction.

Bullish Scenario:

If we witness a weekly candle close above 35.26, it could signal a potential movement towards the all-time high at 41.7. This scenario suggests optimism and a bullish sentiment.

Bearish Scenario:

However, should we experience a weekly candle close below 33.53, the bias could shift to the bearish side, potentially retracing into the bullish fair value gap between 25.59 and 28.11. This scenario calls for caution and strategic planning.

SCHW: A Technical Outlook

Next on our radar is Charles Schwab Corporation, represented by the ticker symbol SCHW. Here's a glimpse of its technical landscape.

SCHW confronts an intriguing situation with an unresolved monthly fair value gap lying between 36.89 and 39.5, established by the October 2020 candlestick. This price range has the potential to act as a significant support zone.

Trade Strategies:

The direction in which SCHW moves hinges on a monthly candle closure.

Bullish Perspective:

  • If the monthly candle closes above 63.2, consider a swing LONG strategy. Implement a stop loss at the August low and aim for a target of 75.72. This strategy exudes confidence in an upward trajectory.

Bearish Perspective:

  • In the event of a monthly close below 63.2, swing SHORT might be the approach. Set a stop at the August high and set your sights on the range between 39.5 and 36.89. This approach remains cautious, anticipating potential downside.

ING: Charting a Course

Lastly, let's focus on ING Group, represented by the ticker symbol ING. This European banking giant is presenting some interesting patterns.

ING is poised for a move towards 15.97, and upon successfully breaching this level and securing a weekly candle close above it, it could set its sights on 20.58. These price levels are indicative of potential opportunities for traders.

Critical Pivot Area:

Beneath ING lies a pivotal pivot area ranging from 11.15 to 11.54. The market's reaction to this zone could be a game-changer.

Potential Scenarios:

  • A weekly close below 11.15 could transform the overall bullish sentiment into a bearish one, targeting 8.14 and 4.52. This situation demands a cautious approach.

As a young finance enthusiast, it's crucial to grasp the complexities of the banking sector. These insights into XLF, SCHW, and ING provide valuable guidance for your investment journey. Whether you opt for bullish optimism or bearish caution, remember that thorough research and calculated strategies are your most reliable allies in the world of finance. Happy trading! 📈💼

Free Trading Discord: https://discord.gg/pennybois



Get Our Trade Alerts In Real Time

Get crypto education, live streams, real time trade alerts, exclusive NFT deals, and more.


YOU MAY ALSO LIKE

Get Our Weekly Watchlist

Get the latest market news, stocks to watch, earning reports, exclusive discounts and more!
PennyBois
PennyBois

PennyBois is a group of experienced traders dedicated to providing hedge fund quality trade alerts without the cost.