We've been looking to increase our exposure to US focused banks, and $KEY is on our short list as a new add. But so far we have yet to pull the trigger. PPS had been working a sym tri - again - but that broke down on 12/3, and now that former (broken) rising support line is classically acting as overhead resistance today to the penny.
The three closes last week below the 50% range retrace suggest general weakness, and we would expect that mark to be retested before able to move higher.
Parabolic SAR still suggest a bear sentiment. P&F chart bullish, but we are only pennies from a 3 box reversal. And then a mere $0.50 from the first sell trigger in over a year.
Even as today was the first full day in a week that the MA(200)d acted as support and the MACD histo turning positive, the MA(50)d is diving down from above PPS, toward the MA(200)d for a potential death cross. And the current MA(50)d is already below the last swing peak, suggesting it will be difficult on technicals along to take out $8.48.
Bottom line, this one could find a footing soon, as of now is still a battle ground stock, that could be quickly pushed over a technical cliff if we fall over that fiscal one.
Update: 12/12. $KEY hit and crossed its secondary (swing) resistance line (defined by close of 9/19, 10/4 and 11/26), as well as the MA(50)d, but is now pulling back hard. Has potential today to paint a bearish inverted hammer at the top of a swing, which could lead to more selling pressure and a test of the $8 mark, the 12/4 close and the prior swing low.
Fundementally, QE-4-ever can't be good for regional banks, so the direction of the PPS on $KEY is in the hands of Ben today.
With death cross looming and a series of lower sing highs and lower swing lows has been the trend since Sept and nothing yet to suggest that this is anything more than a bear releif rally. Yet. Of course if $KEY can get two sequential closes above $8.33, then the technicals start to look somewhat better - especially if the MA(50)d turns positive...but that may take weeks.
Intraday technicals (12/12) for $KEY just getting worse. A close here not only paints an inverted hammer, but an uber-bearish ourside reversal. Glaring underperformance from other finaicals we are already in such as $JPM, $JEF and $C. Sell-if for Thrusday and Friday all but assured.