Wells Fargo (NYSE:WFC) has been declining for quite some time. The company was caught in a bogus account scandal that has resulted in numerous fines and congressional investigations. These problems are still lingering, but history suggests that WFC will resolve these issues eventually.
Recently, the stock topped out on June 29 at $56.60 a share. Since that high pivot, the price has declined to $50.97. The stock is also trading below its important 50- and 200-day moving averages, putting the stock in a weak technical position. Traders and investors should watch the $46.00 area as the next major support level as it's an area that was defended in November 2016. Often, past support levels are defended when retested.
And that's where the stock should catch a bid.
