Current trend

Shares of Wells Fargo & Co., one of the leading banking and insurance companies in the United States, resumed growth after almost two months of correction to a long-term uptrend: quotes reversed around the lower limit of the Murrey trading range at 56.25 (Murrey level [0/8]), moved into its positive part and tested the reversal level of 60.94 (Murrey level [6/8]). When consolidated above it, the trading instrument will open a growth path to the targets of 62.50 (Murrey level [8/8]) and 64.06 (Murrey level [ 2/8]).

The key for the "bears" is the 58.59 mark (Murrey level [3/8]), supported by the central line of Bollinger Bands, the breakdown of which will open the possibility for resuming the decline of the asset to 56.25 (Murrey level [0/8]), 54.69 (Murrey level [2/8]).

Technical indicators confirm the likelihood of further growth: Bollinger Bands are reversing up, MACD is stable in the positive zone, while Stochastic is pointing down, which does not exclude a decline, but its potential is limited.

Support and resistance

Resistance levels: 60.94, 62.50, 64.06.

Support levels: 58.59, 56.25, 54.69.

Trading tips

Long positions can be opened above the 60.94 mark with targets of 62.50, 64.06 and stop-loss around 59.60. Implementation period: 5–7 days.

Short positions should be opened below the level of 58.59 with targets of 56.25, 54.69 and stop-loss in the area of 60.00.