• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

Western Alliance Is Making an Upside Breakout

Let's review the charts and indicators.
By BRUCE KAMICH
Oct 08, 2021 | 01:02 PM EDT
Stocks quotes in this article: WAL, JPM, BAC, XLF

Western Alliance (WAL) is a holding company for other banks and its chart is breaking out on the topside. We recently recommended  JP Morgan (JPM)  and  Bank of America (BAC)  so a positive-looking chart for WAL should not be a big surprise. 

 
Let's check. 
 
In this daily bar chart of WAL, below, we can see that prices are breaking out on the upside of a seven-month high-level consolidation pattern. This large rectangle pattern should be able to support significant gains in the weeks and months ahead. Prices are trading above the rising 50-day and 200-day moving average lines.
 
The On-Balance-Volume (OBV) line has turned up with the rising price action from the middle of September. A rising OBV line happens when the trading volume on up days is heavier than the trading volume on down days.
 
The Moving Average Convergence Divergence (MACD) oscillator is bullish and supports the overall bullish picture for WAL. 
 
 
In this weekly Japanese candlestick chart of WAL, below, we can see that prices are breaking out on the upside from a $90-$110 consolidation pattern. Prices are above the rising 40-week moving average line.
 
The weekly OBV line has made a new high for the move up to confirm the price gains. The trend-following MACD oscillator is crossing to the upside for a fresh outright buy signal. 
 
 
 
In this daily Point and Figure chart of WAL, below, we can see the recent price strength and an upside price target in the $126 area. 
 
 
In this weekly Point and Figure chart of WAL, below, the software is counting the X's and O's for a possible $150 target price. 
 
 
Bottom line strategy: With WAL turning higher with other banks it is no surprise that the ( XLF) , the Financial Select Sector SPDR ETF, looks strong. Traders looking for an individual security could go long WAL at current levels risking to $100 for now. The $150 area is our price objective. 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Banking | Financial Services

More from Investing

Don't Worry About Capitulation but Focus on How the Market Wind Is Blowing

Bob Byrne
May 16, 2022 8:17 AM EDT

If you're a short-term trader, try to identify which way the market is trying to auction.

A Weekend Review of Indicators Points the Way to a Tradable Rally

Bruce Kamich
May 16, 2022 7:58 AM EDT

Keep in mind that this is not a buy-and-hold recommendation but rather a path to producing modest gains over the next few weeks.

Worries About a Potential Recession Are Building

James "Rev Shark" DePorre
May 16, 2022 7:39 AM EDT

For now, this is a bear market, and strength cannot be trusted.

Markets, Not So Confident Fed, Stocks Losing Streak, China Economy, My Trades

Stephen Guilfoyle
May 16, 2022 7:18 AM EDT

This week's earnings focus will be on the retailers with rivals such as Walmart and Target, as well as Home Depot and Lowe's reporting.

China's Economy Could Be Shrinking as Big-Ticket Purchases Stop

Alex Frew McMillan
May 16, 2022 6:14 AM EDT

China's government is more concerned about stopping the spread of Covid-19 than spurring the economy back to life.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 07:14 PM EDT PAUL PRICE

    A New, Very Scary Movie

  • 08:51 AM EDT PAUL PRICE

    Advice From the Future...

  • 12:20 PM EDT PAUL PRICE

    A Blast From the Past Regarding Bitcoin

  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login