Wells Fargo shares gain for the first time in four sessions on Tuesday, holding strives to rebuild trust with a new compensation scheme

January 11, 2017 8:31 am

Wells Fargo & Company revealed a new long-term compensation plan for branch bankers, which is to include incentives based on customer service rather than sales objectives, according to an internal document provided by Mary Eshet, a spokesperson from the bank holding. The new compensation structure comes at a time, when Wells Fargo is struggling to rebuild its reputation following last year’s scandal related with a high-pressure sales campaign, which urged the lender’s CEO John Stumpf to resign.

Wells Fargo shares closed higher for the first time in the past four trading sessions on Tuesday. The stock went up 0.70% ($0.38) to $54.62, with the daily high and the daily low being at $55.18 and $54.26 respectively. In the week ended on January 8th the shares of the bank holding company lost 0.13% of their market value compared to a week ago, which marked a second consecutive period of decline. The stock has pared its drop to 0.89% so far during the current month, after climbing 4.14% in December. The latter has been a third straight month of advance. For the entire 2016, the shares of the NYSE-listed holding company gained 1.38%.

“Our top priority is to communicate the new plan to leaders and team members first and we are focused on ensuring they have the information they need to be successful”, Mary Eshet said in an emailed statement, cited by Reuters. “This new plan is one step in our efforts to restore trust with team members and customers, and we will continue to make additional changes.”

The bank holding agreed to pay $190 million in fines and restitution in order to settle charges, according to which the group’s employees created 2 million deposit and credit card accounts without being permitted by clients.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Wells Fargo stock are presented as follows:

R1 – $54.70
R2 – $54.79
R3 (Range Resistance – Sell) – $54.87
R4 (Long Breakout) – $55.13
R5 (Breakout Target 1) – $55.42
R6 (Breakout Target 2) – $55.55

S1 – $54.54
S2 – $54.45
S3 (Range Support – Buy) – $54.37
S4 (Short Breakout) – $54.11
S5 (Breakout Target 1) – $53.82
S6 (Breakout Target 2) – $53.69

By using the traditional method of calculation, the weekly levels of importance for Wells Fargo & Company (WFC) are presented as follows:

Central Pivot Point – $55.29
R1 – $56.10
R2 – $57.16
R3 – $57.97
R4 – $58.78

S1 – $54.23
S2 – $53.42
S3 – $52.36
S4 – $51.30

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