The shares of Wells Fargo & Co., one of the leading banking and insurance companies in the United States, are trading at 56.00.

On the daily chart, the price is holding in a correction trend, returning to peak values ​​after working out the signal from the reversal Head and shoulders pattern.

On the four-hour chart, the potential for strengthening the downward dynamics remains high and the reason for it is the price holding below the Neckline at 57.00. After a breakdown, the movement will continue to ​​54.00 and 50.00. A change in trend is likely after testing 59.00.

Technical indicators still hold the sell signal, despite its weakening against a local correction: the fast EMA of the Alligator indicator is below the signal line, maintaining a stable range of fluctuations, and the histogram of the AO oscillator forms new bars, consolidation below the transition level.

Trading tips

Short positions may be opened after the consolidation below the support level of 54.40, with the target at 50.10. Stop loss is 56.00. Implementation period: 7 days or more.

Long positions may be opened after the consolidation above the resistance level of 57.40, with the target at 62.50. Stop loss is 55.20.