WFC breaks below Thursday's low
Wells Fargo & Company (WFC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, WFC ended the week 3.47% higher at 24.17 after edging lower $0.29 (-1.19%) today on low volume, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 24.32, the stock confirmed its breakout through the previous session low after trading up to $0.40 below it intraday.
Daily Candlestick Chart (WFC as at May 22, 2020):
Friday's trading range has been $0.56 (2.29%), that's far below the last trading month's daily average range of $1.10. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WFC.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 24.85 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 23.92 where further sell stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Wells Fargo. Out of 311 times, WFC closed higher 51.13% 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 10 trading days, showing a win rate of 60.77% with an average market move of 0.38%.