Wells Fargo

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.

>>5 Stocks Ready to Break Out

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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