In March, I took a look at $WFC. I think it is worth revisiting that here.

In that prior post, I discussed the range it has been trading in as well as the historical fractal I think I recognize. And that may be especially relevant now today, as the fractal continues to “rhyme.”

So, as before (the GFC), we had a liquidity crisis (this time COVID) that produced a huge monetary stimulus. Banks responded by rallying. Then, as now, they’ve gone through a period of consolidation, and in both cases have broken down from rangebound conditions.

It remains to be seen if this fractal will continue to “rhyme,” but at least so far, this still looks awfully familiar to me.

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A member has requested that we examine $WFC. I have a good insight on this one that I would like to share, a lovely fractal.

For starters, let’s look locally. It’s clearly in accumulation or distribution. I have tried to arrive at a detailed count for this from the COVID crash lows on many occasions, and there are some specifics that I cannot quite solve with conviction, so I will ignore a refined count and just discuss this range. Now, this, much like the Russell (bank heavy) has traded sideways forever. But, unlike the Russell, this hasn’t fallen out of its range and remains above its 250-day EMA.

But, the failed breakout is a failed breakout. If it is re-accumulation, bear in mind that they often end with a “spring,” a drop that shakes out unwanted participants. We could be doing that now. So long as it remains in or above this range, it may move up and out of it again.

That said, I know this pattern. i’ve watched it develop before, and I will show it to you on the next chart.

Read more “Member Request: $WFC Looks Like Something I Have Seen Before”

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Note: When articles are first published, most of them are made available only to my Patreon supporters (I do try to publish some public posts on occasion). Over time (usually after a period of a few weeks or so), I make all of the work public. To gain access to my work when it is produced (or to join my Discord chatroom), please consider becoming a patron. Note that there is a 7-day free trial period. More information may be found on my About page and on my Patreon page.

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