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.
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