If there is one company that is being punished lately, it is Wells Fargo (WFC). 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.
(Click on image to enlarge)
Comments
Log in or sign up to join the conversation.