WFC dominated by bulls lifting the market higher throughout the day
Wells Fargo & Company (WFC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, WFC finished Thursday at 30.90 gaining $1.93 (6.66%) on low volume, slightly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 30.30, the stock confirmed its breakout through the previous session high after trading up to $1.09 above it intraday.
Daily Candlestick Chart (WFC as at Mar 26, 2020):
Thursday's trading range has been $2.31 (7.88%), that's slightly below the last trading month's daily average range of $2.58. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WFC.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 29.08 earlier during the day, the market bounced off the key technical support level at 29.11 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on March 19th, WFC actually lost -6.33% on the following trading day.
Although the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Wells Fargo. Out of 426 times, WFC closed higher 53.05% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after five trading days, showing a win rate of 53.29% with an average market move of 0.11%.