There’s a good deal of momentum behind Wells Fargo (WFC).
The bank stock is just beginning to pivot higher from its lower Bollinger Band (2,20), with oversold extensions on RSI, MACD, and Williams’ %R. WFC soared late last week after the Federal Reserve announced it will temporarily lift the asset cap on the bank. The decision came after “Wells Fargo pointed out that the asset cap prevented it from participating in the government’s small business lending efforts, which are being implemented in an attempt to lessen the economic blow from the spread of the novel coronavirus,” as noted by Guru Focus.
We’re also watching for Wells Fargo earnings on Tuesday, April 14 before the bell. Even if earnings and outlook took a hit from the virus, the pullback from $47.50 to less than $26 may have priced in most of the negativity to date.