It is time to buy falling regional bank stocks, says traders

According to two traders, investors should consider buying into regional banks that are being swept off. SPDR S&P Regional Banking ETF (NYSE: KRE) has dropped over 5% this week as it gets caught in the middle of broader market sell-off and dropping bond yields. However, Piper Sandler senior technical analyst Craig Johnson told CNBC's "Trading Nation" that the trade is off from falling knife.

The pressure of falling 10-year bond yields affecting regional banks

He explained that the little shake out being experienced is just that a shakeout. Johnson further said that you could find god support at the rising 200-day moving average, and he could buy the financials on the current weakness.

Also, Blue Line Capital President and Founder Bill Baruch shared the same sentiment during the interview, stating that he added to his KRE position during Thursday's trading. Baruch said:

The banking sector could recover in 2H 2021 since most people are using credit

Baruch is optimistic that although KRE broker recently below support at $63.5, he expects it to recover considering its corrected of a vital Fibonacci retracement level on Thursday. If KRE bounces off the 61.8% retracement level, it could head to a new support level.