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Patrick Dunuwila

Chart of the Day - Wednesday, August 27, 2025

August 27, 2025

 

🏆 Today's Chart of the Day was shared by Sam Gatlin (@sam_gatlin).
 

  • The Regional Banking ETF ($KRE) notched its highest close of the year today as the ETF approaches resistance from its December highs around $66.
     
  • Sam notes that $66 represents the neckline of a 10-month Head & Shoulders Bottom. Clearing this threshold would pave the way for a full recovery back to its 2022 all-time highs, near $78.
     
  • Short interest exceeded 100% at the April lows. It's starting to tick lower, but remains significantly elevated at 93%. Further strength from $KRE would bode well for Small Caps, as Banks are the largest industry group in the Russell 2000.

The Takeaway: Regional Banks ($KRE) are flirting with the neckline of a multi-month bottom. With heavy short interest, a break above $66 could squeeze 'em back to record highs at $78.
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