- BAC and WFC stock both have the weakness in the chart pattern
- WFC needs to open above the $ 50 range to get strong bullish move
- BAC needs to open or close above $14 for next upward move
Banks had a bad first quarter and banks stocks was laggard in the current uptrend. Stock traders and investors were expecting bank earnings would dismay this quarter. JPM earning today surprised stock trader and investors. Financial sectors got rallied because of JPM earning surprise. Tomorrow BAC, Wells Fargo (WFC) among some other financial stocks will report their 1st Quarter earnings.
WFC stock earning consensus is $.98 for this quarter. Anything above that level would be earning surprise for WFC. WFC is up today 2.64 %. However, stock is still down 10 % from its 2015 closing price.
WFC chart shows that stock is forming a W pattern in the stock chart. Chart neckline is at $50.6 and stock trades today at $49. Stock opening above the $50 will be a good thing for the WFC stock as we see stock 100 day moving average at $50.6 and stock recent pivot high is also $50.7. Stock trader wants to see stock open above the $50 price range and the price action between 50 to 51. If stock closed above the $51 tomorrow, a bullish uptrend will be confirmed for the stock. However, any closing price above $50 would be good for the stock but for the confirmation of the neckline break stock needs to close above $50.5.
However, if stock failed to beat the earning tomorrow, Stock may come back to $45 price range again and W pattern formation will failed. Another down leg we may watch while market will started to pull back from its current bull run.
Bank of America (BAC) also has good day today. Stock was up 52 cents or 3.92 % today because JPM earning surprise. Stock is still 18 percent down from its 2015 close.
BAC’s recent pivot point high is $14. Stock open above $14 will be good start for the stock. However, BAC chart looks relatively strong than other financial stock. Stock close above 14.5 can be a good bullish sign for the stock and if stock crossed 100 day moving average which 14.6 area and closed above 15 would be a confirmation for stock uptrend. Either tomorrow stock needs to close above $14.
On the other hand, if stock missed the earnings it could go down as low as $11, which is also retest of February 2016 low point.