Current trend

This week, the stock prices of Wells Fargo & Co., one of the leading banking and insurance companies in the United States, resumed their decline as part of a medium-term downtrend: they failed to break above the central mark of the Murrey trading range at 56.25 (Murrey level [4/8]) and are now close to the level of 54.69 (Murrey level [5/8]), supported by the central line of Bollinger Bands, with a breakdown of which downward dynamics may strengthen to the targets of 53.12 (Murrey level [2/8]), 51.56 (Murrey level [1/8]) and 50.00 (Murrey level [0/8]). The key mark for the "bulls" is 57.81 (Murrey level [5/8], at the breakdown of which the quotes will be able to leave the descending channel and continue to grow to 60.94 (Murrey level [7/8]) and 62.50 (Murrey level [8/8]).

Technical indicators confirm the continuation of the downtrend: Bollinger Bands and Stochastic are reversing down, MACD is preparing to move into a positive zone, but the potential for new corrective growth is seen to be limited.

Support and resistance

Resistance levels: 57.81, 60.94, 62.50.

Support levels: 54.69, 53.12, 51.56, 50.00.

Trading tips

Short positions should be opened below the 54.69 mark with targets of 53.12, 51.56, 50.00 and a stop-loss around 55.90. Implementation period: 5–7 days.

Long positions can be opened above the level of 57.81 with targets of 60.94, 62.50 and a stop-loss around 56.65.