BOH Bank of Hawaii Is this a safe short?
Updated
BOH has been in a downtrend for 2 months since the very beginning of the small bank crisis all
precipitated by the fed and its rate hikes confounding the value of bonds with fixed yields.
As can be seen on the 4H chart, price was in consolidation in January and February but the
dropped out of the supply / resistance zone which is quite thick by the Luxalgo indicator.
Price hit another consolidation range at about $ 50 and then moved lower as the banking crisis
was temporarily stabilized but then took another downside leg. the moving averages show
price underneath both the EMA 100 and EMA 20 while also in the range of three standard
deviations below the mean anchored VWAP. the EMA100 and the mean anchored VWAP
provide confluent super-trend direction. Support is breaking down; Price is in the deep
undervalued area and has not stabilized where it is. As such it bargain hunter's dream but
more likely a solid and sate shorting candidate. I always keep in mind if a catalyst such as
federal rescue measures comes into play, and price reverses above say $36.00 some buying
momentum could come into effect especially if short sellers need to cover their positions to
out with a small profit or loss. This play would have far less liquidity than PACW but perhaps
more room to the downside from which to realize profit.
precipitated by the fed and its rate hikes confounding the value of bonds with fixed yields.
As can be seen on the 4H chart, price was in consolidation in January and February but the
dropped out of the supply / resistance zone which is quite thick by the Luxalgo indicator.
Price hit another consolidation range at about $ 50 and then moved lower as the banking crisis
was temporarily stabilized but then took another downside leg. the moving averages show
price underneath both the EMA 100 and EMA 20 while also in the range of three standard
deviations below the mean anchored VWAP. the EMA100 and the mean anchored VWAP
provide confluent super-trend direction. Support is breaking down; Price is in the deep
undervalued area and has not stabilized where it is. As such it bargain hunter's dream but
more likely a solid and sate shorting candidate. I always keep in mind if a catalyst such as
federal rescue measures comes into play, and price reverses above say $36.00 some buying
momentum could come into effect especially if short sellers need to cover their positions to
out with a small profit or loss. This play would have far less liquidity than PACW but perhaps
more room to the downside from which to realize profit.
Trade closed: stop reached
BOH is having a rally along with other small banks. Time to go long.
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