Why Wells Fargo Looks Ready To Breakout This Week
The following stock has been highlighted by VantagePoint Software, an artificial intelligence platform that provides market forecasts 1-3 days in advance.
Shares of Wells Fargo & Co (NYSE:WFC) closed up nearly 3 percent in Monday's session, as the entire financials sector rallied to keep the market in the green. It was the best day for WFC since the company reported a weak second quarter on July 13, missing Wall Street's estimates on both EPS and sales.
But the stock appears to have rebounded, rising 8 percent from its low on that day of $53.63 to Monday's close of $58. As the two charts below show, the recent rally has shares of WFC primed for more upside.
This first chart is a 1-month chart of Wells Fargo, with each candle representing one day of trading. The blue line represents VantagePoint's predicted moving average 72 hours in advance, the black line represents a simple 10-day moving average, and the grey candle is the predicted range for Tuesday's session.
The stock clearly had a change in trend on June 29, which is represented by the predicted moving average crossing over the 10-day moving average. Though the stock is up 8 percent since the start of that uptrend, it hasn't been easy. You can see how WFC has had several days of weakness during that time, and the distance between the two moving averages (which measures the strength of the trend) hasn't increased much.
But when you zoom out to a 3-month chart, it starts to look much better. Not only did Monday's action likely increase the strength of the uptrend, but you can see how the stock has made a series of higher highs dating back to April.
This is a stock to watch over the next few days. With Tuesday's candle predicted to move it even higher, we'll be watching to see if the uptrend picks up even more strength.
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