Wells Fargo Escapes Consolidation Range
Wells Fargo began 2022 with a surge to new multiyear highs. Now after a pullback, the bank is showing signs of continuation to the upside.
First, notice the consolidation between $42 and $52 in the second half of 2021. It made WFC’s January 4 jump above that range a potentially significant breakout.
Second, consider the hammer candlesticks on January 24 and 25. Other financials slid below their 50-day simple moving average (SMAs) those same sessions. Buyers defended WFC above that line, showing its relative strength within the sector.
Speaking of the relative strength in the sector, WFC’s 70 percent gain in the last 12 months ranks highest among members of the
SPDR Financial ETF.
Next, last week’s bounce occurred above the November high. Old resistance became new support.
Finally, WFC has more recently held its 21-day exponential moving average (EMA). Its 8-day EMA also remained above the 21-day EMA during all of January’s broader market pullback.
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First, notice the consolidation between $42 and $52 in the second half of 2021. It made WFC’s January 4 jump above that range a potentially significant breakout.
Second, consider the hammer candlesticks on January 24 and 25. Other financials slid below their 50-day simple moving average (SMAs) those same sessions. Buyers defended WFC above that line, showing its relative strength within the sector.
Speaking of the relative strength in the sector, WFC’s 70 percent gain in the last 12 months ranks highest among members of the
SPDR Financial ETF.Next, last week’s bounce occurred above the November high. Old resistance became new support.
Finally, WFC has more recently held its 21-day exponential moving average (EMA). Its 8-day EMA also remained above the 21-day EMA during all of January’s broader market pullback.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradingView is not affiliated with TradeStation Securities Inc. or its affiliates. TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all 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. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. 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, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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