Wells Fargo & Co. (NYSE:WFC) — We included Wells Fargo in our Top Stocks to Buy for December when the stock was trading at $23.51 saying, “At just 11 times earnings, the stock should sell at $32 since it has commanded a higher multiple in the past.”
On March 2, WFC hit its high of the year at $34.57 where it triple-topped. It then fell to under $30 in April, and last week jumped above its 50-day moving average at $32.36, only to reverse under it yesterday. The reversal was accompanied by a sell signal from the stochastic.
The near-term target for the current downtrend is $28, but longer term WFC could match the lows set in July 2010 and 2011 at under $24.