Investors have added a record $ 345 million bet to the banking sector in Europe. This comes as the region’s earnings season gets into gear and just before the UBS Group AG report.
In addition, technical analysis at iShares MSCI Europe Financials ETF seems also strongly bullish.
The price bounced off the50% Fibonacci - a very strong support level.
DeM (8) has given 2 consecutive long signals and DeM Sequential has formed 9th - support for the bullish scenario.
Fundamental logic can also be found in the fact that Europe can not escape the direction of tightening monetary policy, and this moment seems closer. If there are any signs of raising interest rates in the EU, the European banks will be the most profitable.
Source: Bloomberg Finance L.P.
Chart: Used with permission of Bloomberg Finance L.P.
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