This Model Is Flashing A Buy Signal For Bank Of America And Wells Fargo

Moving average prices are widely used in trading. When a short-term average is above a long-term one, the stock is generally moving higher. The opposite is true when the shorter-term average is below the lower one. It usually means the stock is heading lower.

When moving averages cross each other, some traders use it as a signal to buy or sell. Below is a look at the charts of Wells Fargo WFC and Bank of America BAC

On the following chart, the blue line is the 10-day simple moving average. The red line is the 50-day simple moving average.

When the blue line moved above the red line in November, it was a good time to buy. When it crossed below it in June it was a good time to sell.

Now the blue line has crossed back above the red line. It could be time to buy.