European banks testing support after channel breakdown

kimblecharting's picture

What banks do in the states can impact banks in Europe. The opposite is also true, what banks do in Europe, can send important messages to banks in the states.

Below looks at European Bank ETF (EUFN)

CLICK ON CHART TO ENLARGE

In our humble opinion, weakness of late in EUFN and banks in the states (XLF) have NOT broken the upside momentum.

What EUFN does at line (2), which is the 22.37 level, could send very important micro and macro messages to European and banks in the states, as momentum is lofty and could be turning lower.

Line (2) comes into play as support…this could become a very important support test! If this support would happen to give way, a domino impact could take place in the banking sector.

 

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Dontblamethegoat's picture

Tea leaves!

He forgot the tea leaves!

Iconoclast421's picture

What nonsense. This is how you draw the channel:

https://s8.postimg.org/5f1q6b5th/image.png

Notice how it is parallel to the 200 sma.

Greenspazm's picture

Try testing the support on this: FUCK OFF

Thethingreenline's picture

“HELOC is a manifestation of The Obama Doctrine...... in its purest form”

TTGL