Helping elevate Wells Fargo stock is the company's announcement that it has finallynamed a new CEO. Who would have thought it would take Wells Fargo this long to name a new chief? Six months.
In any regard, the stock had been trading relatively well before this news, consolidating in sideways action after a strong rally in early September. In early trading, WFC stock pushed to its highest levels of 2019, although the stock has since retreated from those marks.
Investors are hoping that the bank can continue higher, as it looks to catch up to its peers.
Save 57% During Our Fall Sale. Join Jim Cramer's Action Alerts PLUS investment club to become a smarter investor. Click here to sign up and save!
Trading Wells Fargo Stock
Above is a daily chart and below is a weekly chart for Wells Fargo stock.
The bank lags its peers -- such as those named above -- over the last six months, year-to-date, one year and three year time periods. However, it actually leads them over the last one month and three months timeframes.
Part of that recent outperformance is the move off the August lows, as shown on the daily chart above. WFC stock put in a very nice consolidation phase before Friday's jump.
On the rally out of this range, shares briefly topped but recoiled off the March highs. However, it's holding up over the 23.6% retracement at $50.67. Over the 23.6% retracement, and investors need to see if Wells Fargo stock can forge on to new highs.
Should WFC stock push higher, look to see if it can get to $53. This has been a trouble spot for the stock, which is near its one-year highs and highlighted on the weekly chart above.
If Wells starts to pullback, bulls need to see how it does with the $49 to $50 area. That level has been notable over the past few years, with the 200-week moving average down at $48.93.
Below that is important, though. Not only does Wells Fargo stock have the 10-week and 50-week moving averages near $47.50, it also has the backside of prior downtrend resistance (blue line). This mark has been in play for almost two years, so WFC stock staying above it is very key.
From here, keep it simple: Above $49 to $50, and more upside can continue. Below $49 opens up the door to $47.50. Below that and caution is warranted.
This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.