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Fan Yang

Wells Fargo & Co. (WFC) in Bottoming Price Action After Naming New CEO

Charlie Scharf, previously the CEO of BNY Mellon, will effective start as the CEO of Wells Fargo $WFC on October 21, 2019. The news became official last week, and the market liked it.

WFC Daily Chart

(click to enlarge)

Consolidation - Accumulation?
- WFC has been trading sideways since coming down to $43.40 area at the end of 2018. 
- The high in 2019 was $52.50 and I think WFC is going to challenge this resistance pivot now that the market has some excitement about WFC's new CEO.
- There was good volume on last Friday's (9/27) surge.
- The $52.50 resistance will be key. A break above would show that the year-long consolidation was a period of accumulation - price bottom.
- Looking at the weekly chart, we can see that if price breaks above $52.50, price would be back above the 200-week simple moving average (SMA). 
- This should open up the $59-$60 area, the next common resistance area. 

WFC Weekly Chart

(click to enlarge)

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