streetTRACKS KBW Regional Bank ETF at Key Support

streetTRACKS KBW Regional Bank ETF (KRE), an exchange-traded fund that holds 50 regional bank stocks, on June 6, 2008 closed at $ 31.20, an all-time low. Its chart pattern shows KRE trading just below key support around $32.

And the succession of lower highs (red trend line) and stable lows (black support line) suggests that a descending triangle, a bearish formation, is in place.

Meanwhile, KRE offers a dividend yield of 5.65 percent, which gives investors a cushion during the current uncertainty.

The fund's top five holdings by market capitalization are: Hudson City Bancorp (HCBK), UnionBanCal (UB), Sovereign Bancorp (SOV) Synovus Financial (SNV) and Associated Banc-Corp (ASBC).

The top five holdings by fund weight are F.N.B. Corporation (FNB), SVB Financial Group (SIVB), Bank Hawaii (BOH), Commerce Bancshares (CBSH) and Cullen/Frost Bankers (CFR).

I (RAH) own KRE.

Related Articles:

Exchange-Traded Funds (ETFs) Offer Diversification With Low Fees
Price Patterns - Descending Triangle Indicates a Price Downside
Price Patterns - Support Levels May Constrain Price Downsides
Portfolio of Regional Banks


Posted June 9, 2008.