Charts Predict: Banking Index Could Rally 50% to 100%

US banking stocks could post a huge rally as the market is moving away from its downside momentum, Chris Locke, a technical analyst from Oytsertrade.com told CNBC.

"These are not strategic plays; this is not a position to take the long term. These are trading opportunities. We have built up a very clear and defined bullish wedge, full of oscillators, and a definite loss of downside momentum," he added.

"Something like this banking index could easily rally 50 to 100 percent in a matter of weeks, on the short squeeze rather than a long term play to the upside," Locke said about the US banking index.

"I am looking for some kind of upward break and consolidation to begin very soon for this market and probably a sharp rally," Locke added.

Oil is also in a position to rally, according to the charts.

"We've seen a penetration of the 50 day averages to the upside, which is the first time we have penetrated these averages. We've now moved above and that should start support, and shorter term averages are about to cross that 50 day averages," said Locke.

"With bullish divergence complete, the market is set to move higher starting in the beginning of March until the end of the year, making it a recovery year for crude oil ."

The minimum upside target, according to Locke, is a 38.2 percent retracement, taking the price just above the $76 level.

European currencies are not among Locke's favorites but the euro continues to be a good bet against the pound , he said.

"There is a good support center built up just under 90 cents, and it looks like we are on for another good leg towards the upside," said Locke.

"We will test the highs set in December and I still believe that parity will be tested very soon."