Since early 2023, there has been a lot of hand-wringing about banks.
Why so jittery?
The fear of bank failures.
We saw it in Silicon Valley Bank last year and we’ve had another recent scare with NYCB this year.
NYCB hinted at trouble and its stock gapped down huge. It’s since received a bailout, but tension is still in the air.
But at the same time, banks are deeply discounted and appear ready to explode.
In short, if a bank isn’t going under, it could be ready for a big move up.
XP is in that crowd.
Here’s the chart:
XP has been gathering up energy as it’s gone sideways in a tight channel.
A break above $27.02 could unleash a coiled spring upward.
We’ll keep an eye on it.
Happy trading,
— Scott Welsh
P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The chart above uses weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45.
