WFC leading the Banks?
For the last few days, the big money center banks have seen buyers step up into weakness. Wells Fargo is still leading, with its daily chart looking remarkably resilient.
A thrust above recent pivots 53.74 and 53.96 would suggest a short-term target at 55.50 (200ma).
MACD is above its signal line and rising along with RSI. If the latter can manage to sustain a move through 50, next target rei\sistance would be close to 58.50. This coincides with a rather large Volume by Price zone as well.
Bollinger bands also suggest volatility could pick up on this candidate, so if you can stomach some volatility in the financials, BAC, C, and JPM are worth consideration.
Watch for the bands to open top and bottom. This action precedes large and fast gains. If the lower bands turn up, anticipate a slow grind higher.
Credit Suisse (CS), DB also gapped up yesterday if you prefer European banks. EUFN is the Eurobank ETF if you prefer a more diversified approach.
Finally, there are the regionals, which should remain in the crosshairs of any investor thinking about the longer term trend in yields and bank lending.
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