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These two charts show why banks could be on the verge of a breakout

Big Banks can continue to go higher, says Piper Jaffray's Johnson

As financials hit highs, banks are still way off a pre-crisis peak.

2020 could be their year, according to Piper Jaffray chief market technician Craig Johnson.

"These banks can continue to roll on, and if you just start looking at a spread between the 2- and 10-year [Treasurys] yield, you'll see that it's really widened out over the past several months in here. You're over 28 basis points, reversing about a four- or five-year downtrend now," Johnson said Friday on CNBC's "Trading Nation."

A steeper yield spread, which measures the difference between shorter- and longer-term bonds, boosts a banks' net interest margins. Banks borrow on the short end of the yield curve and lend on the long end, meaning higher interest rates on longer-term bonds benefit their profitability.

"The chart of the KRE [regional banking ETF] is also putting in a multimonth bottom here, and we're very close to seeing a nice breakout here. Next resistance is around $61 and then $65," said Johnson. "From our perspective we want to be buying some of these banks, and I think it's a real bullish sign for the overall market as the overall breath begins to widen out."

An increase to $65 suggest 11% upside. It would also put it in reach of an all-time high of $66.04.

A more accommodative Federal Reserve should continue to fuel banks' gains, says Gina Sanchez, CEO of Chantico Global.

"The economy is slowing down. The yield curve, however, has been steepening because that slowdown gives the Fed the room to continue to keep rates low, and I think that'll keep the yield curve steep, and I think that'll continue to help banks," Sanchez said during the same segment.

More importantly, she added, the fundamentals should support more gains for banks.

"The biggest thing that helps banks is their valuation. They continue to be cheap relative to the rest of the market," Sanchez said. "Investors want good value, and banks right now have probably some of the best valuations out there."