Wells Fargo WFC 0.4% and Bank of America BAC 0.5% have begun offering some of their clients an indirect entry into the cryptocurrency space. On Friday Coindesk reported Wells Fargo has registered a private Bitcoin (CRYPTO: BTC) fund which will be available to some of its wealthiest clients. Last month Bank of America began allowing some of its clients to trade Bitcoin futures.
The news of more U.S. banks delving into the crypto space may help make the banking sector more appealing to younger investors who have flooded the market since global lockdown orders began at the start of 2020.
Those who have taken the technical approach, depending on their style, use different timeframes to chart stocks. A scalp trader will often use the 15 or even five-minute chart to enter and exit trades, a swing trader may choose to use the daily or hourly chart while a longer-term investor may find the monthly or weekly charts more helpful.
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Both Wells Fargo and Bank of America have settled into bullish patterns on the monthly chart and could offer gains for investors who want to play with common shares or leaps (far dated call contracts). It should be noted that any chart pattern can be invalidated and every trader should have a stop loss to manage risk.
The Wells Fargo Chart: Wells Fargo has settled into a bull flag pattern on the monthly chart with the pole created between November 2020 and May 2021 and the flag between May and July. This month Wells Fargo attempted to break up bullish from the flag, reaching a high of $51.41 but rejected the level and retraced to a support level at $46.75.
On Thursday and Friday the stock tested the level and bounced which has created a bullish double bottom on the daily chart. This indicates Wells Fargo’s stock may bounce up again and verify the bull flag on the monthly chart as a recognized pattern.
Wells Fargo is trading above the eight-day and 21-day exponential moving averages (EMAs) with the eight-day EMA trending above the 21-day, both which are bullish indicators. The stock is trading above the 200-day simple moving average (SMA) which indicates overall sentiment is bullish.
Bulls want to see the break from the flag completed and for bullish volume to push the stock up over the $51 mark. There is resistance above at $50.92 and $53.43. The bull flag will be invalidated if Wells Fargo loses support of the eight-day EMA.
Bears want to see big bearish volume come in and knock Wells Fargo back down into the flag and for the upper descending trendline to continue to act as resistance until the stock loses support at $43.02. Below the level there is further support at $41.54. Source https://www.benzinga.com/trading-ideas/long-ideas/21/08/22608116/why-wells-fargo-and-bank-of-america-could-be-in-for-a-long-term-break-out-amid-bitcoin-a