Wells Fargo Vs. Citigroup: Stocks At Important Resistance Levels
Sometimes, stocks that are in the same industry have similar features on their charts. That’s the case with Wells Fargo & Company (NYSE:WFC) and Citigroup Inc. (NYSE:C). Each is testing, or trading at, an important resistance level.
What To Know: Resistance is a large group of sellers offering their shares at the same price. At resistance levels, there is more than enough supply to fulfill all of the demand. This is why rallies end when they reach them.
If the resistance breaks, meaning that the price moves above it, it shows that the sellers who created it are gone. They have finished or canceled their orders. This sets the stage for a move higher.
Why It's Important: If the resistance holds for a few days or more, there’s a good chance the bears start to sell the stock, and this could force the price lower.
For WFC, the resistance is at the $46.50 level.
For Citigroup, the $69 level is important.
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