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Fan Yang

Key Resistance Around $50 for Wells Fargo & Company (WFC)

Wells Fargo & Co $WFC has been in consolidation mode since 2018 after it retreated sharply from a high around $66. It first pulled back to $50 and consolidated above that support/resistance pivot area. Then it broke down this level and dropped to the 2017 lows around $44 before consolidating again.

WFC Weekly Chart

(click to enlarge)

Consolidation Resistance:
- During this latest period of consolidation since the end of 2018 to now, price has held above the $44 level and has treated the former support around $50 as resistance.
- I actually thought that price was going to clear below $43.50-$44 support area in August, but the market bought WFC at these levels and provided it with a rebound.
- However, I wonder if buyers here are confident that WFC can push through the $50-$51 resistance area. 
- I suspect that WFC will find resistance here. We might see a brief break above $50, but I think price won't get much higher than $51 before retreating.
- I think the market is bearish-neutral, but with an emphasis on the bearish. So eventually, I think there is still a good chance price will break below the support around $44 for another 10% drop to the $38-$40 area before finding support.
- However, if price DOES break above $51, I would consider a bullish continuation scenario. After all, when we look at the monthly chart, the long-term bullish trend is still intact. A break above $51 would thus signal a push to $58, and an eventual challenge of the 2018 high around $66.

WFC Monthly Chart

(click to enlarge)

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