Wells Fargo & Company (WFC) - February 26, 2024
Heading into Canadian bank earnings week. It’s interesting to see that the relative strength of some of the largest U.S. banks has been improving lately. After steadily dropping down the relative strength rankings in the SIA S&P 100 Index Report through 2022 and early 2023, Wells Fargo & Comp (WFC) bottomed out deep in the red zone in April of 2023.
For the last ten months, WFC has steadily been clawing its way back up the rankings. It left the red zone in December and has been moving up withing the Yellow Neutral Zone since then. On Friday, WFC finished in 29th place after climbing 3 spots in the day. Wells Fargo is currently sitting three spots outside of the green zone where it has not been since December of 2022.
Candlestick Chart Shows Increasing Accumulation:
Wells Fargo (WFC) spent 18 months, from April 2022 to October 2023 stuck in a sideways trading range between $34.00 and $46.00. Since November, the shares have been under renewed accumulation. In December, they broke out of a bullish Ascending triangle base, and following a few weeks of consolidation where the $46.00 breakout point reversed polarity to become support, the shares have started to rally again, advancing on $54.00 for the first time in two years.
Initial upside resistance appears at the early 2022 peak near $57.00, followed by the $58.00 to $60.00 range, then closer to $70.00 based on measured moves. Initial support appears between the 10-week moving average near $49.50 and the $50.00 round number.
Point and Figure Chart Catapults Upward:
Wells Fargo (WFC) shares spent nearly all of 2022 and 2023 drifting listlessly in a sideways range between $34.50 and $46.50. Back in October-November, a downswing was contained by a long-term 45-degree uptrend support line. Since then, the shares have been under renewed accumulation, staging two bullish Double Top breakouts and rallies with only a 3-box correction between them; a classic Bullish Catapult.
Trading at their highest level in two years, next potential resistance for WFC appears at the February 2022 peak near $56.85, followed by the $64.00 to $65.30 zone where vertical and horizontal counts converge. Initial support appears near $49.50, just below the $50.00 round number, where a 3-box reversal and recent breakout point converge.
With a perfect SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 10 out of 10, WFC is exhibiting short-term strength across the asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.