Technical Analysis of Financials

Below is a chart of the diversified financials ETF, XLF.
The chart shows Bollinger bands, relative strength (RSI), and moving average convergence divergence (MACD).


Note the huge gap in bollinger bands because of the high level of recent volatility in XLF. The bollinger bands suggest a slightly less volatile market for the financials in the months ahead. The relative strength reading has crossed under 20 which is typically a marker for a very oversold stock. The RSI suggests a rebound in the next month in financials.


Related Terms: MACD, RSI, XLF, volatility in financials, volatility of XLF