SPDR KBW Regional Banking (KRE:NYSEArca) is breaking out. A monthly candle close above the breakout line at 41.50 required for confirmation. Check out the monthly candle chart. After the previous breakout reached it’s target, the price has been in a consolidating rectangle pattern for +1 year.

Here is the 5 year weekly candle chart. The boundaries of the rectangle are well drawn.

Zoom in on the 1 year daily candle chart. Frequent tests of the breakout line (resistance) and currently above the breakout line.

There was also some “noise” below the breakdown line. Check this previous post on how to avoid whipsaws of this nature.

I’ll come back to this chart at the end of month. IF the price is still above the breakout line, I’ll have a target of 46.50.

Right now, this is looking like a setup you can bank on!