WFC closes within prior day's range after lackluster session
Wells Fargo & Company (WFC) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
WFC ended the month -3.29% lower at 25.60 after edging lower $0.10 (-0.39%) today, notably underperforming the S&P 500 (1.54%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (WFC as at Jun 30, 2020):
Tuesday's trading range has been $0.70 (2.78%), that's far below the last trading month's daily average range of $1.34. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for WFC. Prices continued to consolidate within a tight trading range between 25.17 and 26.40 where it has been caught now for the last three trading days.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern, the Bullish Short Candle and the White Candle which are known as bullish patterns. The last time a Bullish Hikkake Pattern showed up on June 9th, WFC actually lost -8.95% on the following trading day.
The stock found buyers again today around 25.17 for the third trading day in a row after having found demand at 25.26 in the previous session and at 25.25 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for Wells Fargo. Out of 111 times, WFC closed higher 55.86% 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 60.36% with an average market move of 0.62%.