The Financials ETF, XLF, is highly liquid and made up of large cap financials from the S&P500 index. The recent volatility is messing up many charts but this one seems to be consolidating in some obvious technical patterns that may help traders identify a new breakout; if and when it might trigger. There are no guarantees with any trading but watching for momentum-based trend line breakouts can help shape up probability in a traders’ favour.

XLF weekly: price action on the weekly chart looks to be setting up in a bullish continuation Ascending Triangle. The height of the triangle is $26 and technical theory would suggest that any bullish breakout above $31 might extend as far as $26 beyond this breakout level:

XLF daily: the triangle on the daily shows price action consolidating below this $31 level:

XLF 4hr: this is just a more expanded view of the daily triangle:

XLF 4hr + fibs: any break of the support trend line and bearish shift would bring the $24.50 level into focus. This is near previous S/R and the 4hr chart’s 61.8% fib:

XLF 15 min: drilling down to the lower time frame 15 min chart shows price trading below an extra bear trend line within this 4hr triangle:

XLF 15 min + fibs: any bullish breakout and attempt at some mean reversion would bring the $27.80 level into focus. This is near previous S/R and the 61.8% fib.

Summary: watch the 15 min chart trend lines for any new breakout:

• any bullish breakout would bring the $27.80 level into focus.
• any bearish breakdown would bring the $24.50 level into focus.