Wells Fargo (WFC - Get Report) stock initially stumbled lower in Tuesday morning trade, as the bank led off earnings season.

Investors had mixed feelings heading into Wells Fargo's third-quarter results. On the one hand, the firm finally has a new CEO, but on the other hand, that gave management the opportunity to "kitchen sink" the quarter and set a low bar for the future.

After a shaky 30 minutes of trading, shares are pushing higher and trying to breakout. While WFC stock has lagged most of its peers over the long term, it's starting to play catch up as its short-term performance has bested many of the other big banks.

That includes JPMorgan (JPM - Get Report) and Citigroup (C - Get Report) , which also reported earnings on Tuesday morning.

It also makes Wells Fargo an excellent candidate for Real Money's Stock of the Day. Let's look to see if that outperformance can continue.

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Trading Wells Fargo Stock

Daily chart of Wells Fargo stock.
Daily chart of Wells Fargo stock.

The post-earnings rally is actually coming off a bottom-line miss, as earnings of $1.07 per share missed analysts' estimates by 11 cents per share. Revenue of $22.01 billion easily topped expectations, though, coming in almost $700 million above estimates despite growing just 30 basis points year over year.

We mapped out the earnings setups in Bank of America (BAC - Get Report) and JPMorgan earlier this week, but what about Wells Fargo stock?

For Wells Fargo, shares successfully held the 20-day moving average and 38.2% retracement in Tuesday morning's pullback. Rallying on this type of report could suggest that investors are ready to own the stock, giving it more upside potential. As it stands, WFC stock also yields about 4% with its dividend, which could give investors extra incentive to buy it.

From here, look to see if WFC stock can reclaim the 23.6% retracement near $50.67. Above that and the 2019 high near $51.40 is on the table. This area rejected Wells Fargo stock twice this year, and in a very swift manner.

Above $51.40 and the 52-week highs at $55.04 are possible. 

On the downside, see that the 20-day moving average continues to act as support. The $47 area is the must-hold mark for Wells Fargo stock right now, with both the 50-day and 200-day moving averages coming into play near that mark.

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.