Wells Fargo Drops, Here Is The Trade

President & CEO Chief Market Strategist at IntheMoneyStocks.com • Jan 15, 2020 at 1:11 PM EST

Traders and investors must now watch the $44.00 area as the next major support level. This level was defended in August 2019 and will likely be defended again when retested.

Leading financial stock, Wells Fargo & Co (NYSE: WFC), plunged lower yesterday after reporting earnings. Today, the stock is seeing more downside, WFC stock is trading lower by $1.10 to $48.19 a share. Traders and investors should note that the stock is now trading below it’s 200-day moving average. This formation is putting the stock in a weak technical position on the charts.

Traders and investors must now watch the $44.00 area as the next major support level. This level was defended in August 2019 and will likely be defended again when retested. Traders who look to take this trade can place a stop loss below the $43.00 level on a weekly chart closing basis. This will help to limit the risk in case of further downside. Note the chart below and let's make some money…

(Click on image to enlarge)

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