Up first is banking giant Wells Fargo (WFC). Wells has been testing a breakout for the last few trading sessions -- and we could see a buy signal get triggered in today's session. Here's how to trade it.
Wells Fargo has been forming an ascending triangle setup for the last month and change. The ascending triangle is formed by a horizontal resistance level above shares at $41.50 and uptrending support to the downside. As WFC bounces in between those two technically important price levels, it's getting squeezed closer and closer to a breakout above that $41.50 resistance level. When that breakout happens, it's time to step into a position.The recent momentum breakout in WFC adds some extra upside confidence to this setup. Our momentum gauge, 14-day RSI, had been trending lower since the first week in May. The breakout this week increases the probability of a breakout in price. If you decide to jump into WFC, I'd recommend a protective stop at the 50-day moving average.
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