Home
News
- 1 Wells Fargo stock price closed at $43.56 while observing a loss of -0.34% during the last intraday trading session.
- 2 WFC stock price trades above 20,50,100 and 200-day EMAs.
- 3 The year-to-date(YTD) return of Wells Fargo and the company is 4.69% while S&P 500 has a YTD return of 17.34%.
WFC stock price has been in a bullish uptrend forming higher lows after it fell and formed support at $36.65. The stock price has seen a rise of roughly 24.16% from the May low of $36.40. The last candle was a strong bearish candle declining 0.34% after forming a high at $45.31.
Wells Fargo’s stock price saw a sharp fall during the month of March, declining more than 20% due to the collapse of several United States banks. The main factor that led to the fall of several U.S banks was that the banks had uninsured deposits and unrealized losses in their bond portfolios which would destroy shareholders’ equity if the bonds were to be sold to cover deposit outflows.
Wells Fargo also had about $41.5 billion of unrealized profits which had yet to be accounted for in its equity calculation. If the stock price can rise above the immediate resistance level of $44.80, there is a possibility that it might head toward the next resistance level of $47 causing a rise of roughly 4.95%. On the other hand, if bears can push the price below the recent support of $42.30, it might melt toward $40.50.
Reason For Fall Of Wells Fargo And Company Even After Positive Earnings
On July 14, Wells Fargo reported its quarter 2 earnings which were positive. The bank did beat the consensus estimates of revenue and earnings per share. The revenue turned out to be $20.533 billion while consensus estimated it to be $20.167 billion.
The earning per share also a surprise of 0.095 (8.21%), and turned out to be $1.25. Even though the earning results were positive and the price saw a rise, the next candle wiped out all of the gains. The stock valuation is looking rich which means that the company needs to outperform the consensus estimates by an even wider range than usual to continue the rally.
Will WFC Stock Price Melt To $42.30?
The stock price trades above 20,50,100 and 200-day EMAs suggesting bullish momentum in the price. Chaikin money flow score is -0.05 indicating slight weakness in the market. RSI traded at 61.73 indicating bullish momentum in the price.
Conclusion
Technical parameters indicate that the price still possesses bullish momentum and WFC stock price can form support, it might retrace toward the resistance level of $44.80. The market structure and price action of Wells Fargo and Company is bullish but the last candle has shown a rise in bearish pressure.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
