BALTIMORE ( Stockpickr) -- Stocks may be having a tough year in 2011, but the selling in the broad market doesn't even come close to the pain that's been felt in the financial sector this year. As a group, financials have sold off by more than 30.6% year-to-date, leaving investors in need of a 44% rebound just to get back to breakeven. But that may be exactly why it makes sense to buy financials right now.

Even though the selling in the financial sector has been brutal this year, a large number of financial names have been basing in recent weeks and months, pointing some traders to indications that we could see some semblance of a recovery in financials for 2012. With valuations looking cheaper than ever for the sector, value investors could join in on the act too.

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The only caveat, of course, is that it doesn't make sense to buy up financial sector names with both hands. There's still considerable risk weighing against this industry. To find the names worth watching this week, we'll turn to the technicals.

For the unfamiliar, technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution.

With that, here's a look at five financial sector trading setups that could deliver breakout gains to your portfolio this week.

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