The stock has been wildly volatile recently amid uncertainty over whether the bank will survive the crisis of net deposit outflows that caused the recent failure of SVB Financial Group's (NYSE:SIVB) Silicon Valley Bank.

On Monday, news hit that JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon is in talks with several other big bank leaders to help solve First Republic’s outflow crisis, according to a report. Withdrawals at First Republic have exceeded $70 billion since Silicon Valley failed.

• On Tuesday, First Republic was forming an inside bar pattern, with all the price action taking place within Monday’s trading range. The pattern leans bearish in this case because First Republic is in a downtrend, but traders and investors can watch for the stock to break up or down from Monday’s range to gauge the future direction.
• From a bullish perspective, First Republic has developed a bullish divergence on the daily chart. A bullish divergence occurs when a stock makes a series of lower lows while its relative strength index makes a series of higher lows. The divergence indicates bullish momentum is returning to First Republic, which could signal a longer-term reversal.
• Conservative bulls and bears want to see First Republic’s volume continue to decline over the next few days to indicate consolidation. If that happens, a subsequent influx in volume, paired with a big move in either direction, will give traders more clarity.
• First Republic has resistance above at $21.88 and $23.46. The only support below is the psychologically important $15 and $10 levels.