Looking at sector performance over the last week, the financial sector has finally started to rebound along with the rest of the broad market. The SPDR Financial Sector ETF (XLF) closed up 6.84% on the week, making it the best performing sector in the S&P 500 index followed by the Industrial sector. Mortgage Finance, Banks, and Investment Services were the top performers inside the financial sector.

Using Trading Central’s technical event screener I searched for financial stocks that confirmed classic bullish technical analysis reversal patterns with a possible measured move to the upside of at least 15%. I was also interested in stocks that have listed options available as stocks with options tend to be more liquid and give us the ability to sell calls in a market that has seen increased volatility.

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What we found

Royal Bank of Canada (RY: NYSE) Prices have broken above a bottom triangle reversal pattern.

A Bottom Triangle shows two converging trendlines as prices reach lower highs and higher lows. Volume diminishes as the price swings back and forth between an increasingly narrow range reflecting uncertainty in the market direction. Then well before the triangle reaches its apex, the price breaks above the upper trendline with a noticeable increase in volume, confirming this bullish pattern as a reversal of the prior downtrend.

Visa (V: NYSE) has also broken above a bottom triangle. This one is a bottom triangle (Bottom wedge)

Brown & Brown Inc. (BRO: NYSE) confirmed a symmetrical triangle breakout.

The investment ideas presented here are for information only. They do not constitute advice or a recommendation by Trading Central in respect of the investment in financial instruments. Investors should conduct further research before investing.

Author: Trading Central

Source: Finance. Yahoo: Interesting Bottom Reversal Technical Pattern Breakouts in the Financial Sector

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