- Wells Fargo & Company (NASDAQ: WFC) price prediction sheds light on the recent bullish price action of WFC stock price.
- WFC stock surged 13.55% in the last one year.
- WFC stock price broke a rising wedge pattern to the upside with a price target of $50.
Wells Fargo & Company’s (NASDAQ: WFC) price prediction shows the recovery phase of the market since March 2023. The market jumped 17% to the resistance level of $48.48 at the start of the year 2023. The WFC stock price got rejected at the resistance level, and the price plunged 25% to the critical support level of $35. Since then, the market has made a recovery of 25.25% to its current price.
At the time of writing, Wells Fargo & Company closed its trading session on Monday, 17th July 2023 at 44.74. This marked a jump of 2.71% over the previous day.
Can Wells Fargo & Company Hit the Price Target of the Rising Wedge?
Wells Fargo & Company’s stock price prediction delivers insights from the recent price action of the WFC stock. The market has been consolidating for the past year. This is due to the correction that succeeded in reaching an all-time high. The market has been volatile amidst this consolidation.
The WFC stock price developed a rising wedge pattern. At present, the market is breaking the pattern to the upside. The price escaped the pattern on July 14, 2023, and went up to its local resistance of $45.43. It got rejected immediately and sent back to the 9 and 15 EMAs, where it’s taking support.
Will the Stock Price Sustain its Bullish Momentum?
The 4-hour chart gives a closer look at the more recent price action. The price began its bullish trend on June 29, 2023, after a bounce from the support of $40.29. This recovery ensured the sustainability of the lower trendline of the rising wedge, which is a key support. This reversal propelled the WFC stock to flip the 200 EMA to the upside, thus changing the trend in the short term.
So far, the bulls have pushed the price by 10.89% to its current market price. The market is riding the waves of the 9 and 15 EMA, which is a sign of bullish strength. The recent price action has sparked the interest of the buyers, which can be seen in the surge in buying volume. The breakout increases the probability of the price reaching $50 in the short term.
RSI
The RSI indicator is currently at 70.43 It is a condition where the market is extremely bullish and overbought. The market may move up aggressively if it sustains above 70.
MACD
MACD made a bullish crossover above the 0 line. However, the MACD and the signal line are moving close to each other near the 0 line. This indicates that the price may move sideways until the indicator crosses the 0 line.
200 EMA
On the 4-hour chart, the price is trading above the 200 EMA. It indicates that the market is under buy pressure and the buyers are in control. The 200 EMA will act as significant support. The WFC stock price will continue to move up until it breaks below the indicator.
Conclusion
Wells Fargo & Company’s (NASDAQ: WFC) price prediction shows the recovery phase of the market since March 2023. The immediate short-term looks bullish, which may lead the WFC stock price to higher levels. It’s important to consider the immediate resistance levels and observe the way the price reacts here. The market has become volatile and can be an exciting opportunity that carries high risk. It would be wise to wait for the break of the resistance. However, investors are advised to follow proper risk management to minimize losses.
Technical Levels
- The nearest support level: $43.25
- The nearest resistance level: $45.43
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