Is Wells Fargo Supported At These Prices?

With shares of Wells Fargo (NYSE:WFC)) trading around $36, is WFC an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for a Stock’s Movement

Wells Fargo provides retail, commercial, and corporate banking services in the United States. Like most larger banks in the United States, this company was the source of much disappointment in 2008. Regardless, the company and stock have recovered and look to be gaining positive ground. Look for Wells Fargo to make moves in an industry that is the backbone of the United States economy.

T = Technicals on the Stock Chart are Strong

Wells Fargo is one of the few banking stocks that are trading near pre-crisis levels. In fact, it looks set to take on all-time highs. Wells Fargo stock has been in a range over the last few years but is now holding the top of the range. This consolidation is positive for the stock because it may be indication that the share price is headed higher. The stock is trading at resistance so wait and see what the stock does around the $40 level.