Wells Fargo Stock Forecast: AI Expansion and Key Levels Near $90

Management is adapting to global changes in the banking sector by rolling out artificial intelligence (AI) solutions across internal operations. As part of this initiative, Saul van Buren — currently head of consumer lending — has been appointed Chief AI Initiatives Officer. Following this announcement, analysts from TD Cowen raised their price target for Wells Fargo & Co. to 93.00 with a “hold” rating, while CFRA Research set a target of 110.00 with a “buy” rating, citing regulatory approval to lift asset caps previously imposed on the bank.

Wells Fargo & Co. is set to report fourth-quarter earnings on January 14. Forecasts suggest revenue could rise to 21.62 billion dollars compared with 20.38 billion dollars a year earlier. Earnings per share are expected to increase to 1.68 dollars from 1.42 dollars, respectively.

Dividends for common stockholders were paid on December 1 at 0.45 dollars per share, representing a yield of 2.09%. This remains below the industry average of roughly 3.25%.

Support and Resistance Levels

On the daily chart, the price remains in a corrective trend, attempting to move farther away from the lower boundary of the ascending channel between 93.00 and 82.00.

Technical indicators are showing renewed upside signals: the EMA lines of the Alligator indicator are widening to the upside, and the AO histogram is forming corrective bars above the zero line.

Support: 87.50, 79.00
Resistance: 91.60, 99.70

Trading Scenarios & Wells Fargo & Co. Forecast

Long positions become relevant if the price continues to rise and consolidates above 91.60, targeting 99.70. Stop Loss — 89.00. Estimated holding period: 7 days or more.

Short positions are appropriate if the price breaks below 87.50 and confirms this level, targeting 79.00. Stop Loss — 91.00.