iShares Dow Jones U.S. Regional Banks (IAT) — This Exchange-Traded Fund (ETF) seeks to mirror the price and yield performance of the Dow Jones U.S. Select Regional Banks Index (DJSRBKT).

It topped off above $41 last September, finally reaching bottom at just under $11 on March 6. Since then, it rallied along with the rest of the financial sector.

On March 26, with IAT at $16.81 (opening), the Trade of the Day said, “But in the past five of six trading days, IAT has closed above its 50-day moving average. This is a bullish sign and since the regional banks are generally considered to have fewer problems than the mega-banks and the dividend yield is high at 6.8%, IAT may turn out to be a good long-term investment.

“And for traders, if the stock can continue to generate high volume, a breakout above $17.32 might result in a run to its 200-day moving average at just under $25.”

With the recent “break-away-gap” at the 20-day moving average, IAT has advanced through its long-term resistance line and closed above the January high. This turns the group bullish, so investment-grade, long-term investors should consider buying the group via IAT, and traders’ near-term target is still at just under $25.

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Sam Collins is a registered, fee-based portfolio manager who may be contacted samailc@cox.net. You can also check out an archive of some of his most recent market outlooks by clicking here.