WELLS FARGO & CO.: HIGH POTENTIAL OF STOCK GROWTH BOOST
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | BUY STOP |
| Entry Point | 62.05 |
| Take Profit | 64.70 |
| Stop Loss | 61.00 |
| Key Levels | 56.30, 60.00, 62.00, 64.70 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 59.95 |
| Take Profit | 56.30 |
| Stop Loss | 62.00 |
| Key Levels | 56.30, 60.00, 62.00, 64.70 |
Current trend
The shares of Wells Fargo & Co., one of the leading banking and insurance companies in the United States, are adjusting at 60.00.
Yesterday, the management announced the conclusion of a contract with the financial data processing platform TradeSun Inc., whose artificial intelligence-based product allows one to digitalize the manual processes of data collection and analysis, preparation and filling of documents. Using this platform will allow Wells Fargo & Co. to attract new customers by significantly reducing the time required to visit offices.
The emitter's financial report for the first quarter reflected revenue growth to 20.86 billion dollars, which was higher than 20.48 billion dollars in the previous period and the forecast of 20.18 billion dollars. Earnings per share (EPS) amounted to 1.20 dollars with preliminary estimates of 1.07 dollars and 0.86 dollars a quarter earlier.
On March 1, Wells Fargo & Co. shareholders received a dividend of 0.35 dollars per share. The date of the new payment has not yet been set, but the amount will be increased to 0.40–0.41 dollars, which will bring the quarterly yield closer to 3.0%.
Support and resistance
On the D1 chart, the instrument is correcting, trying to get closer to the resistance line of the ascending channel with the borders of 62.00–56.00.
Technical indicators, after a short slowdown, again strengthen the buy signal: the range of fluctuations of the EMAs of the Alligator indicator is actively expanding, and the AO histogram is forming ascending bars, being significantly above the transition level.
Support levels: 60.00, 56.30.
Resistance levels: 62.00, 64.70.
Trading tips
If the asset continues to grow and the price consolidates above the resistance level of 62.00, one may open long positions with the target of 64.70 and stop-loss of 61.00. Implementation time: 7 days and more.
If the asset continues to decline and the price consolidates below the support level of 60.00, one can open short positions with the target of 56.30 and stop-loss of 62.00.
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