A technical analysis of WELLS FARGO & CO.

Our stockscreener has identified a possible breakout setup on WELLS FARGO & CO (NYSE:WFC). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NYSE:WFC for potential opportunities.

Insights from Technical Analysis

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Overall WFC gets a technical rating of 10 out of 10. Both in the recent history as in the last year, WFC has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, WFC did better than 87% of all other stocks. On top of that, WFC also shows a nice and consistent pattern of rising prices.
• WFC is one of the better performing stocks in the Banks industry, it outperforms 95% of 415 stocks in the same industry.
• WFC is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month WFC has a been trading in a tight range between 55.43 and 58.44.

Check the latest full technical report of WFC for a complete technical analysis.

How does the Setup look for NYSE:WFC

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:WFC this score is currently 8:

Besides having an excellent technical rating, WFC also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 57.79. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 57.34, a Stop Loss order could be placed below this zone.

Trading setups like NYSE:WFC

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout screener.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.