Banks allowed to buyback shares beginning Q1 2021
On Friday, the Federal Reserve indicated that Wall Street banks were in sound condition, thereby giving permission to banks to resume stock buybacks starting in the first quarter.
33 largest banks in the nation got a major validation from the Fed’s second round of stress tests, despite the macroeconomic impact of the coronavirus pandemic. The banks that are subject to the stress tests all have at least USD 50 billion in assets. The Fed said that the tests showed that all 33 banks have capital cushion above their minimum requirements to protect against risk. Still, the regulators have maintained restrictions on dividend payouts through March. Nevertheless, buybacks of company stock will be allowed again, with some limits.
According to the Fed’s latest decision, the amount a bank will be allowed to pay shareholders or buy back in its stock will depend on the banks’ earnings over the past year. A bank earning no income during that period would not be able to payout dividends or buy back shares in the first quarter of 2021.
KBE's RSI Indicator ascends from oversold territory
The RSI Oscillator for KBE moved out of oversold territory on January 13, 2025. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 22 similar instances when the indicator left oversold territory. In of the 22 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for KBE just turned positive on January 15, 2025. Looking at past instances where KBE's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
The 10-day moving average for KBE crossed bullishly above the 50-day moving average on January 29, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where KBE advanced for three days, in of 296 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 69 cases where KBE's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on February 03, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on KBE as a result. In of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
KBE moved below its 50-day moving average on February 03, 2025 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KBE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
KBE broke above its upper Bollinger Band on January 15, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for KBE entered a downward trend on January 22, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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