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Wells Fargo (WFC) - Get Wells Fargo & Company Report has been bumping up against heavy resistance this month. The stock's powerful 14% rally off October's low has had difficulty putting distance on its 200-day moving average. Of late, Wells Fargo is showing signs of upside exhaustion and may be on the verge of a significant pullback. The stock finished Monday very near its rally highs, but downside risk is growing.

For investors, an opportunity to purchase shares at lower levels may be just around the corner.

Earlier this month, on Nov. 6, Wells Fargo surged more than 1.75% with the help of a big jump in trade. This surge lifted the stock above its October high and appeared to have enough momentum to break it free of its flatlining 200-day moving average.

Unfortunately for the bulls, Wells Fargo immediately stalled near a key resistance level. The stock was unable to move past the devastating breakdown gap left behind back on Aug. 21. This gap, located just above $56, is part of a heavy resistance zone that includes the 2014 high as well as early 2015 high set back in March. Following Friday's downside reversal, it is now likely that another monthly high is in place inside this resistance zone.

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For patient Wells Fargo bulls, a healthy pullback from the November high will provide a low-risk buying opportunity. Currently shares are at their highest overbought reading, according to the daily moving average convergence/divergence indicator, in over a year. A fade in the near term will allow the stock to work off this overextension.

As this plays out, investors should focus on the $54-to-$53.20 area. This support zone includes the stock's September high as well as the April and March lows. A one-third retracement of the October rally rests in this area as well. If Wells Fargo can build a short-term base here, it will be in great shape to mount a new bull leg.

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Disclosure: This article is commentary by an independent contributor. At the time of publication, the author held was long WFC.