Stock of the day: Wells Fargo

Earning season is underway and definitely remember this when picking up a stock for your portfolio. If you want to avoid an unpleasant surprise, why not to pick a stock, which already had its results published? One of those is Wells Fargo (WFC), which already presented its numbers on Friday.

Unfortunately, both profits and revenue, were lower than expectations but luckily it did not cause a sell off on the chart. Quite the opposite, the company reacted with a rise in its stock, which was of course also supported by the general bullish sentiment that we saw on the broad market.

Friday’s upswing is very important from a technical point of view as WFC managed to climb back above two major resistances – the long-term down trendline (navy blue) and the horizontal one at 40.8 USD (light blue).

The price being above those two is a sign of strength and an invitation for a buy signal. The positive sentiment will be cancelled, if WFC falls back below the down trendline, but chances for that are now rather limited.