If there is one company that is being punished lately, it is Wells Fargo. The bank was plagued last year with a massive consumer scandal that caused investor panic and dissension and the eventual removal of the CEO. It’s been a tough road back, but the stock recently peaked at all-time highs. It has since come under severe pressure but support has held steady at the 200 moving average – and that may be its saving grace.
Volume popped last week after the stock got pounded on earnings. Like moths to a flame, the stock bolted to the 200 ma to test support. A successful bounce on decent turnover happened again on Monday. Make no mistake, the chart is still in a severe downtrend but it is now in deviation. We could see a sharp move upward to resistance, around the 56 area. Above that level the chart turns bullish, and new highs could be coming.
Wells Fargo (NYSE:WFC) Video Chart Analysis
Take a deeper dive into the chart action on tech stock Wells Fargo NYSE: WFC and learn how to read the technicals. Get Bob Lang’s full analysis as he marks up our chart of the week.
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About Wells Fargo
Wells Fargo & Company, a diversified financial services company, provides retail, commercial, and corporate banking services to individuals, businesses, and institutions. Its Community Banking segment offers checking, savings, market rate, and individual retirement accounts, as well as time deposits and remittances; and lines of credit, automobile floor plan lines, equity lines and loans, equipment and transportation loans, education and residential mortgage loans, and debit and credit cards. This segment also provides equipment leases, real estate and other commercial financing, small business administration financing, venture capital financing, cash management, payroll services, retirement plans, merchant payment processing, and private label financing solutions, as well as purchases retail installment contracts. Its Wholesale Banking segment offers commercial loans and lines of credit, letters of credit, asset-based lending, equipment leasing, international trade facilities, trade financing, collection, foreign exchange, treasury management, institutional fixed-income sales, commodity and equity risk management, insurance, corporate trust fiduciary and agency, and investment banking services, as well as online/electronic products.
