Wells Fargo http://i.thestreet.com/files/tsc/v2008/photos/graphics/032812_rebecca3.jpg
$182 billion banking firm Wells Fargo (WFC) is another name that's showing traders a bullish setup right now, albeit a short-term one. Like Nike, Wells has been rallying over the last six months, climbing a full 40% over that time as cash started pouring into the oversold financial sector.
While that rally has taken a breather in the past week or two, an ascending triangle pattern in shares points to additional upside in April.
An ascending triangle pattern is a setup that's formed by a horizontal resistance level above a stock's price level and uptrending support below it. As shares bounce in between those two technically significant levels, WFC is getting squeezed closer and closer to a breakout above resistance - in this case at $34.50. A push above that level indicates that buyers have absorbed the glut of supply that's previously caused $34.50 to act like a price ceiling. It's a clear-cut signal to buy shares of WFC.The declining volume that we've seen over the course of this setup is a good sign. When the trade does trigger, we'd ideally like to see volume increase as traders participate in the breakout. This WFC setup could move fast once it triggers -- you'll want to keep a close eye on it. Wells Fargo shows up on a recent list of 5 Best Bank Stock Ides From JPMorgan and is one of 10 Top Warren Buffett Dividend Stocks. Follow @stockpickr
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