(KeyCorp, Inc – Regions Financial ) Well it looks as though our pair may just be ready to take off on Monday’s regular trading session. As we know, the pair is out of the woods with both stocks in the pair having reported last week. As you can see from the chart, I am initiating a new layer with a half-sized, Beta Weighted trade set-up with the pair. Our entry will be in the range of $2.49 to $2.25 or so. Ok, now let’s take a closer look at the technicals below.
Technically speaking, our pair has excellent correlation 0.99+, and the expected range of travel is about 0.40- to 0.50- below the 10 SMA. The RSI Wilder is oversold with a value of 4.0, and will strengthen, as the pair moves toward our target mean of $2.89. I will have the new layer pair set-up in pending trades and will feature as “Pair Of The Day” in the next trading day’s edition of “ShadowTraderPro Pairs Trader” posted daily at “MyTrade”.. ; )
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