Current trend

Shares of Wells Fargo & Co., one of the leading banking and insurance companies in the United States, are correcting at 64.00.

Against the corporation’s recently published Q3 report, leading experts have improved their assessment of the issuer’s securities. Thus, analysts at Phillip Securities have raised their rating from Neutral to Accumulate and the target price from 60.83 dollars per share to 65.00 dollars per share against an improved profit forecast for the year by 5.0% with an increase in the multiple to book value (P/BV) by 1.29 times and earnings per share (EPS) – at least 10.0% higher than previous estimates.

According to financial statistics, quarterly revenue fell from 20.69B dollars to 20.37B dollars, missing the forecast of 20.39B dollars and lower than 20.86B dollars in the same period a year earlier. Earnings per share increased from 1.33 dollars per share to 1.42 dollars per share compared to estimates of 1.28 dollars per share.

Support and resistance

On the daily chart, the trading instrument is moving in a corrective trend, trying to retreat from the resistance line of the downward channel 58.00–48.00.

Technical indicators have given a buy signal: the EMA fluctuation range of the Alligator indicator is expanding in the direction of growth, and the AO histogram is forming ascending bars above the transition level.

Resistance levels: 65.80, 72.80.

Support levels: 62.50, 55.40.

Trading tips

Long positions may be opened after the price rises and consolidates above 65.80, with the target at 72.80. Stop loss — 63.00. Implementation period: 7 days or more.

Short positions may be opened after the price falls and consolidates below 62.50, with the target at 55.40. Stop loss — 65.00.