Wells Fargo shares gain the most in ten weeks on Monday, the group extends banking agreement with Nevada

April 18, 2017 8:06 am

According to an April 17th statement by Wells Fargo & Company (WFC), the holding has extended its banking agreement with the State of Nevada until 2021. The agreement will have a two-year renewal option.

Wells Fargo shares registered their largest daily surge since February 3rd during Monday’s trading session. The stock went up 2.67% ($1.37) to $52.72, after touching an intraday high at $52.76, or a price level not seen since April 12th ($54.02). In the week ended on April 16th the shares of the bank holding company lost 6.36% of their market value compared to a week ago, which marked a sixth consecutive period of decline and also the worst performance since the week ended on September 18th 2016. However, the stock has pared its drop to 5.28% so far during the current month, following a 3.84% slump in March. The latter has been the first monthly drop since September 2016. For the entire past year, the shares of the NYSE-listed holding company gained 1.38%.

A number of states, including California, Ohio and Illinois, have already severed relations with the third largest bank in the US, following last year’s sales scandal.

In September, Wells Fargo estimated that up to 2.1 million clients might have found themselves having deposit and credit card accounts created in their names without authorization during the course of several years, due to the bank’s high pressure sales campaign. As a result, the financial holding company agreed to pay $185 million in order to settle charges related to the scandal. In addition, an array of federal and state investigations was triggered, 5 300 Wells Fargo branch employees were laid off, while the group’s former CEO John Stumpf resigned.

The bank has been trying tirelessly to rebuild customer trust since then.

According to CNN Money, the 27 analysts, offering 12-month forecasts regarding Wells Fargo’s stock price, have a median target of $60.00, with a high estimate of $66.00 and a low estimate of $49.00. The median estimate is a 13.81% surge compared to the closing price of $52.72 on April 17th.

The same media also reported that 14 out of 31 surveyed investment analysts had rated Wells Fargo’s stock as “Hold”, while 10 – as “Buy”. On the other hand, 5 analysts had recommended selling the stock.

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 – $52.86
R2 – $53.00
R3 (Range Resistance – Sell) – $53.13
R4 (Long Breakout) – $53.55
R5 (Breakout Target 1) – $54.03
R6 (Breakout Target 2) – $54.26

S1 – $52.58
S2 – $52.45
S3 (Range Support – Buy) – $52.31
S4 (Short Breakout) – $51.90
S5 (Breakout Target 1) – $51.41
S6 (Breakout Target 2) – $51.18

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

Central Pivot Point – $52.65
R1 – $53.95
R2 – $56.55
R3 – $57.85
R4 – $59.15

S1 – $50.05
S2 – $48.75
S3 – $46.15
S4 – $43.55

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