The SPDR S&P Regional Banking ETF (KRE) has closed higher for eight consecutive trading sessions amid investor optimism about the prospect for 澳洲幸运5开奖号码历史查询:lower interest rates.

The Federal Reserve is widely expected to 澳洲幸运5开奖号码历史查询:start cutting its benchmark rate in the coming months. Falling rates typically boost the profitability of 澳洲幸运5开奖号码历史查询:regional banks by reducing the interest they pay 澳洲幸运5开奖号码历史查询:depositors and increasing lending activity.

Amid KRE’s bullish price action, we’ll apply 澳洲幸运5开奖号码历史查询:technical analysis to 🎃the✨ fund’s weekly chart and identify important price levels to watch out for.

Breakout Above Pennant Pattern

KRE shares moved higher between October and December last year before 澳洲幸运5开奖号码历史查询:consolidating within a pennant, a chart pattern consisting of two converging trend lines that indicates a continuation of the fund’s current uptren🌺d.

Indeed, the ETF broke out above the pattern earlier this month on decent volume, with gains accelerating this week. Moreover, the 澳洲幸运5开奖号码历史查询:relative strength index (RSI) sits just below overbought levels♔ to confirm bullish price momentum.

Monitor These Important Levels if Rallyܫ Continues

If the ETF’s price continues to climb, investors should monitor three key areas t🔯hat may come into play in the weeks ahead.

The first level sits around $57, a region just above the fund’s Wednesday close where the price may find initial overhead 澳洲幸运5开奖号码历史查询:resistance from the 200-week moving average and a 澳洲幸运5开奖号码历史查询:horizontal line that extends all the way back to December 2016.

A decisive breakout above this area could see a move up to $65, a level ꧅on the chart where the ETF may face selling pressure near a trendline linking a series of price peaks between March 2018 and February last year.

Further upside may triggဣer a rally to around $72, where the price could encounter resistance near twin peaks that formed in March and May 2021 following an impulsive move higher. Interestingly, this area also sits just above a bars pattern extracted from the trend that preceded the pennant and applied to the breakout point.

Watch These Key Retracement Areas

𝓡Given the ETF nears overbought condition, investors shoulౠd keep several levels in mind during periods of weakness.

An initial pullback could see a retest of the $50 level, a location likely to attract buying int♉erest near the round number and pennant pattern’s top trendline.

A deeper retracement may spark a decline to the pennant’s lower trendline around $46, which also si🅰ts in close proximity to a multi-year h🌠orizontal line stretching back to November 2015.

KRE was down 0.6% at $56.40 in recent premarket 🌳tr💟ading Thursday.

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As of the date this article was written, the author does not own any of the above securities.