The European financial sector is an important cog in the European economy and its stock market indices. Which is why investors want to tune in to this sector/region right now.
Moreover, European bank stocks and the broader financial sector are nearing an important juncture in time and price.
Looking at a weekly chart of the iShares MSCI European Financials Sector ETF (NASDAQ:EUFN), it’s clear that investors are at a critical juncture.
You can see how the Euro banks ETF broke down and out of an 18 month rising up-trend channel (point 1), and is now testing support (point 2). Either the banks are going to recover and make another run at overhead resistance… or they will follow through to the downside.
A move through support to the downside would not only be reason for caution on European equities, but also on U.S. equities as it could cause some domino selling. In my humble opinion, European Financials should be on your radar.
European Financials ETF (EUFN) – Weekly Chart
Twitter: @KimbleCharting
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
