• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock WFC Stock: A Step-By-Step Analysis to Better Time Your Entry
Stock

WFC Stock: A Step-By-Step Analysis to Better Time Your Entry

by March 12, 2024
by March 12, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Wells Fargo (WFC)’s stock price has been trending higher since November 2023, after it broke out above a downward-sloping trendline. The company has had its share of woes, which is evident in its stock price’s choppy movement. Overall, though, the stock, along with other big banks, has been trending higher and has hit a new all-time high.

So is the stock worth buying? Let’s analyze the Financial sector and dive into WFC’s stock charts.

Bullish Percent Index

The chart below of the S&P Financial Sector Bullish Percent Index ($BPFINA) shows it’s at 86.11, indicating the Financial sector is bullish. The indicator is turning higher, which suggests that financials may still continue to trend higher.

CHART 1. S&P FINANCIAL SECTOR BULLISH PERCENT INDEX (BPI). The Financial sector is bullish and could remain that way for an extended period of time.Chart source: StockCharts.com. For educational purposes.

Sector Summary

If you look at the one-month sector performance using the StockCharts Sector Summary, the Financial Select Sector SPDR (XLF), a proxy for the sector, isn’t the highest performer, but it has the second highest StockCharts Technical Ranking (SCTR) score of 89.

CHART 2. ONE-MONTH SECTOR SUMMARY. The Financial sector may not be the top sector performer, but it has the second-highest SCTR score, which makes it a strong-performing sector.Chart source: StockCharts.com. For educational purposes.

Both data points suggest that the Financial sector is strong and that it is worth checking out WFC stock.

Symbol Summary

The Symbol Summary tool in StockCharts gives you a bird’s-eye view of a stock or exchange-traded fund. Enter WFC in the symbol box and review WFC’s stock chart, fundamental data, technical data, earnings history, SCTR rank, and the predefined scans with WFC. As of this writing, WFC was filtered in four scans—New 52-week Highs, Moved Above Upper Price Channel, P&F Ascending Triple Top Breakout, and P&F Double Top Breakout. The stock appears to be technically strong and gaining strength.

Monthly Chart of WFC Stock

Looking at a 20-year monthly chart, you can see that WFC had its share of choppy movement.

CHART 3. MONTHLY CHART OF WELLS FARGO STOCK. The stock is trending higher, but will it pull back?Chart source: StockCharts.com. For educational purposes.

Overlaying the 120-month simple moving average (SMA) on the monthly chart (representing 10 years), you see that despite the choppy price movement, WFC has been gently trending higher, with the price reverting to average price movement. Since the stock is trading much higher than average, is it likely to pull back?

Daily Chart of WFC Stock

The daily chart of WFC below has a 50-day SMA overlaid on price. The pattern of price movement is similar, in that price tends to revert to the SMA after it deviates from it. So is WFC too toppy, or is it worth the investment after a pullback?

CHART 4. DAILY CHART OF WELLS FARGO STOCK. The stock may be looking toppy, but, if the momentum is still strong, the stock could continue to rise.Chart source: StockCharts.com. For educational purposes.

When a stock hits an all-time high, there’s a reason it’s moving higher. The stock will continue rising as long as the momentum supports the price move. This is why it helps to add a momentum indicator. There are several to choose from—Moving Average Convergence/Divergence (MACD), Relative Strength Index (RSI), Average Directional Index, and Rate of Change (ROC), to name a few.

In this example, the ROC is added to the lower panel below the price chart. Notice the indicator fluctuates above and below the zero line. When the ROC is above the zero line, it indicates positive momentum. The ROC has pulled back, and could reverse and move higher. If ROC moves below the zero line, that’s a signal that momentum is slowing. Note how, in previous pullbacks to the 50-day SMA, the ROC went below the zero line, reversed, and moved back higher.

The Bottom Line

Even though WFC stock is hitting all-time highs, the momentum hasn’t shown signs of slowing down. If you’re nervous about buying a stock that looks toppy, the charts show that WFC could pull back. As long as it stays above its 50-day moving average on the daily chart, you could enter a long position as long as the Financial sector remains healthy and the upward momentum is strong in the stock. If you want to wait till WFC pulls back, it may require some patience—a necessary trait for successful traders and investors.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

You Might Also Like
  • Long-term Breadth Indicators Hit Moment of Truth
  • Week Ahead: NIFTY Stays Significantly Deviated From It’s Mean; Stay Vigilant At Higher Levels
  • Top Ten Charts for August: Two Tempting Consumer Staples Names
  • Growth Stocks Drop Again — and That’s Just the Beginning?!?
Share
0
FacebookTwitterPinterestWhatsapp

previous post
The Body Shop shuts down U.S. operations, with plans to close dozens of U.K., Canada stores
next post
US-Israeli citizen who was kidnapped on Oct. 7 confirmed dead, IDF says

You may also like

Gilead’s Game-Changer: What You Need to Know About the Stock

June 21, 2024

The Ord Oracle July 25, 2023

July 26, 2023

Bitcoin, Politics, and Profits: What You Need to Know About...

June 13, 2024

MEM TV: Growth Stocks Push Market Above Resistance

January 28, 2023

What Happens to GOOGL When This Negative Divergence Executes

May 28, 2024

Art and Science: 3 Key Ratios in the Markets

March 24, 2023

From Crash to Comeback: Is SMCI Stock the Hottest AI...

February 19, 2025

Finding Pure Strength Using the PMO (DP Trading Room Video)

January 22, 2024

DP Trading Room: Market Holds Its Breath

May 1, 2023

Four Charts to Keep Inflation at Bay

February 16, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Dick’s Sporting Goods stands by full-year guidance — even with tariffs looming

      May 28, 2025
    • Top Sectors to Watch + The 18 SMA Setup Every Trader Should Know

      May 28, 2025
    • Macy’s CEO says retailer will hike some prices as tariffs cut into profits

      May 28, 2025
    • 23andMe to delist from Nasdaq, deregister with SEC

      May 28, 2025
    • Walmart fined for shipping realistic toy guns to New York, violating state law

      May 28, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,763 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,470 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,449 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,427 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,305 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,101)
    • Investing (538)
    • Stock (2,576)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Dick’s Sporting Goods stands by full-year guidance — even with...

      May 28, 2025
    • Top Sectors to Watch + The 18 SMA Setup Every...

      May 28, 2025
    • Macy’s CEO says retailer will hike some prices as tariffs...

      May 28, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,101)
    • Investing (538)
    • Stock (2,576)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Stock Market Ends Week on Optimistic...

    May 24, 2024

    The Ord Oracle November 28, 2023

    November 29, 2023

    Bitcoin Sets Up with Classic Continuation...

    May 17, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here