So the FOMC news came and went. Same for the BOE and BOJ announcements. Markets are starting to run wild and everyone loves tech names. I touched up on $MSFT in my last commentary and it sure is looking good at the moment. However, I wanted to talk about a name most are expecting to move lower but has yet rallied and is starting to outpace others in their sector.
The ticker symbol is $WFC and the company is Wells Fargo. Yes I understand they were hit with a $2.1B fine by the DoJ, but it could have been much worse. The fact that they only got a 2.1 billion dollar fine is pretty mild considering their case. This is where technical analysis played a huge role. They showed strong support at a key price level. That was pretty definitive because the stock could have crashed on the news of the fine. Yet, $WFC held support and is now showing strength as it has rejected off $57.12 range where I was looking for support.
It did breach that price by a measly $0.04 but has basically gone from that price to the highs(which is where the stock is currently at as I write this commentary). I still like the upside and I think if $WFC can peek above $60.00 and hold immediately, we can see the stock move to try and test the 52 week high. That is $66.31 and I think it is realistic to get to the price by the start of Q4 this year. I think the financial sector can help lead the rally like tech has, and it wouldn’t surprise me to see the markets start rallying going into Q3. $WFC has to be on your radar right now.