Forget about Wells Fargo (WFC) -- billionaire Warren Buffett's new favorite bank may actually be Bank of America (BAC) .

Sure, Wells is still the biggest single-stock holding in Berkshire Hathaway's (BRK.A) (BRK.B) portfolio right now (valued at $25.6 billion last count), but BofA may end up a lot more profitable. Buffett bet big on Bank of America during the financial crisis, and Berkshire became the firm's single biggest shareholder earlier this year when it exercised rights to acquire 700 million shares at a massive discount.

That big Bank of America stake showed up on Berkshire Hathaway's Form 13F for the first time when it was made public Tuesday. And it works out to about a $14 billion gain on Buffett's original $5 billion investment.

And there could be more upside left in Bank of America from here -- at least in the long run. It still might make a lot of sense to follow Warren Buffett's lead in Bank of America right now.

To figure out how to trade it, we're turning to the chart for a technical look:

Long term, the price trajectory in Bank of America is unmistakable. Shares have been bouncing their way higher in a well-defined uptrend since the end of 2016, giving investors ample opportunities to build a position in BofA on every test of trendline support.

More recently, this big bank has flirted with new highs, breaking above the previous top of its price channel at the tail-end of October. In some cases, that could be a sign of a trend acceleration, but for BofA, it looks more like an exhaustion move as shares got overbought and have started moving back to earth ever since.

Near term, BofA is showing off a pretty textbook example of a head-and-shoulders pattern, a bearish reversal signal that triggers a downside move if the $25.75 level gets violated. That's not quite the red flag it may seem to be at first glance, however. While the short-term price action looks corrective, the long-term uptrend is still very much intact.

That means it makes a lot of sense to look to build a position in Bank of America on the next test of trendline support, currently down around the $23.25 level.

Like Warren Buffett, a longer-term time frame on this big bank could pay off in a big way -- trend line support has been inviolate since the end of December despite a significant number of tests of that price level. Once the November correction plays out in BAC, look for a buying opportunity as the long-term trend takes back over.

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This article is commentary by an independent contributor. At the time of publication, the author was long BRK.B.

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