The White House is pressuring major banks amid accusations of deliberately refusing to issue mortgage loans to supporters of the Republican Party and President Donald Trump during Joe Biden’s presidency. The key figure in this investigation is Bank of America Corp., but Wells Fargo & Co. and JPMorgan Chase & Co. may also come under scrutiny. Against this backdrop, leading U.S. financial institutions appealed to the Office of the Comptroller of the Currency to introduce national standards for banking services, since currently only state-level rules apply and no unified system exists.
The forecast for Wells Fargo & Co. in the third quarter remains relatively strong: revenue is expected at $21.07 billion, slightly above the $20.37 billion recorded last year, and earnings per share are projected at $1.53 compared to $1.42 previously.
Dividends for the first quarter in the amount of $0.45 per share will be paid on September 1, equivalent to a yield of 2.34%, which still lags behind the sector average of 3.41%.
Support and Resistance Levels
On the daily chart, the price is trading in a corrective trend, moving further away from the support line of the upward channel with boundaries of 92.00–76.00.
Technical indicators, after a brief slowdown, have once again begun to weaken the sell signal: the EMA fluctuation range of the Alligator indicator is narrowing toward growth, while the AO histogram forms corrective bars below the zero line.
Support levels: 76.20, 67.50.
Resistance levels: 81.00, 88.00.
Trading Scenarios
If growth continues and the price consolidates above the resistance level of 81.00, buy positions will be relevant with a target of 88.00. Stop-loss — 78.00. Implementation time: 7 days or more.
If the decline continues and the price consolidates below the support level of 76.20, sell positions will be relevant with a target of 67.50. Stop-loss — 79.00.
Scenario
Timeframe: Weekly
Recommendation: BUY STOP
Entry Point: 81.05
Take Profit: 88.00
Stop Loss: 78.00
Key Levels: 67.50, 76.20, 81.00, 88.00
Alternative Scenario
Recommendation: SELL STOP
Entry Point: 76.15
Take Profit: 67.50
Stop Loss: 79.00
Key Levels: 67.50, 76.20, 81.00, 88.00