Wells Fargo Quietly Breaks Out
Stocks inched lower yesterday, but not Wells Fargo.
The first pattern on today’s chart is $58. WFC was trapped below that level since March 12, but closed above it on Thursday and reached its highest level in over two years. That may suggest the bank stock is breaking out.
Second, Bollinger Band Width highlights the narrow consolidation since early April. Will that price compression give way to price expansion?
Third, WFC is back above its 21-day exponential moving average. Traders could view that as evidence of a bullish trend. MACD is also trying to turn higher.
Finally, there have been some positive news events. The Office of the Comptroller of the Currency (OCC) terminated a cease-and-desist order on February 15 and earnings beat estimates on April 12. (The stock initially dropped but advanced this week.)
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The first pattern on today’s chart is $58. WFC was trapped below that level since March 12, but closed above it on Thursday and reached its highest level in over two years. That may suggest the bank stock is breaking out.
Second, Bollinger Band Width highlights the narrow consolidation since early April. Will that price compression give way to price expansion?
Third, WFC is back above its 21-day exponential moving average. Traders could view that as evidence of a bullish trend. MACD is also trying to turn higher.
Finally, there have been some positive news events. The Office of the Comptroller of the Currency (OCC) terminated a cease-and-desist order on February 15 and earnings beat estimates on April 12. (The stock initially dropped but advanced this week.)
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit [url =tradestation.com/DisclosureTSCompanies] TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
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