There's no question that 2013 has been a good year for Wells Fargo (WFC). Year-to-date, shares of the big bank are up 18%. But it could be getting even better for investors.
That's because Wells is currently forming an ascending triangle pattern, a bullish setup that's formed by a horizontal resistance level above shares and uptrending support to the downside. Essentially, as WFC bounces in between those two technical price levels, it's getting squeezed closer and closer to a breakout above resistance at $41.50. When the breakout happens, we have our buy signal.The financial sector, and Wells Fargo in particular, has shown outsized relative strength over the course of the last month and change. From a statistical perspective, positive relative strength trends tend to signal outperformance over the next three to ten months. That bodes well for Wells Fargo owners right now. Don't be early on this trade. Wait for $41.50 to get taken out before jumping in.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV