Financials about to breakout ?

A look at the chart of XLF :

  • Currently at the resistance of the 50d MA
  • A wedge has formed
  • A break out can be expected

Looking at the weekly chart might give us a clue about the direction:

  • In the beginning of march we see a strong ending of the week followed by stronger weeks.
  • There was a volume breakout
  • Is this a weekly reversal candle ?

If the markets (DIA, SPY, NASDAQ) continue their highs, I would expect a catch up play of Financials, meaning a breakout of the wedge to the upside.


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