Wells Fargo (WFC) helped kick off earnings season, though its first-quarter report left investors underwhelmed, pushing the stock lower on Friday. Wells Fargo stock has moved higher since, however, and is now eyeing a third-straight win — a streak that could mark the start of a bigger breakout, if history is any guide.
Technical Turning Point for Wells Fargo stock
The stock’s recent pullback brought it down to its 320-day moving average, a move that has preceded bullish activity in the past. Per Schaeffer’s Senior Quantitative Analyst Rocky White, there have been three similar pullbacks to this level over the past three years. Following two of those instances, Wells Fargo stock was higher one month later, averaging a 5.1% gain. A move of that magnitude from its current perch near $64.85 would place WFC just above $68 — enough to start filling the bear gap from earlier this month.
It’s also worth noting that Wells Fargo stock sits right on the cusp of being “oversold,” with a 14-day Relative Strength Index (RSI) of 37.5, which could indicate a short-term bounce is on the horizon.
What the Options Market Says About Wells Fargo Stock
Put buyers are still piling in. Over 38,000 bearish bets have crossed the tape today, or double the average intraday volume. This lingering pessimism could create fuel for a rebound, should sentiment start to shift.
Now looks like an opportune moment to speculate. Wells Fargo stock’s Schaeffer’s Volatility Index (SVI) of 37% sits in the 26th percentile of its annual range, suggesting relatively low volatility expectations. Even better for premium buyers, WFC’s Schaeffer’s Volatility Scorecard (SVS) sits at a healthy 88 out of 100 — a sign the stock tends to outperform implied volatility.
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