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.
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV