Stock of the day: Wells Fargo

The upswing on global indices continues, so it’s quite understandable that we now have many more bullish setups than a few weeks ago. In today’s analysis we’ll take a look at a very handsome bullish setup on Wells Fargo, but be advised, there isn’t a buy signal here yet!

Wells Fargo is currently finishing a very handsome Inverse Head and Shoulders pattern (yellow), which started at the end of April. Currently, the price is at the neckline of this formation (orange), which at the same time, is also the 38,2% Fibonacci. What a coincidence! That’s definitely a crucial resistance and as long as we stay below it, there’s no proper buy signal.

A positive sentiment will be triggered only when the price breaks above the orange area. Once the price closes a day there, buyers will be able to claim full victory. As for now, we have to wait and see. A possible gamechanger could even come today!