Shares of Wells Fargo & Co., one of the leading banking and insurance companies in the United States, are trading at 58.00.

On the daily chart, the price is moving in a corrective trend, staying within the ascending corridor of 62.00–54.00.

On the four-hour chart, after reaching the channel resistance line of 58.00, the quotes began to form a corrective downward channel with dynamic boundaries of 58.20–56.30, which can work as a Flag trend continuation pattern, and the upward dynamics will reach 63.00.

Technical indicators are slowing down the buy signal against a correction: fast EMAs of the Alligator indicator are above the signal line, narrowing the range of fluctuations, and the AO histogram forms corrective bars above the transition level.

Trading tips

Long positions may be opened after the price rises and consolidates above 58.50, with the target at 63.00. Stop loss – 57.00. Implementation period: 7 days or more.

Short positions may be opened after the price declines and consolidates below 56.50, with the target at 52.30. Stop loss – 58.00.