NEW YORK, NY – Wells Fargo & Co (NYSE: WFC) shares took a significant hit on Thursday, closing down sharply in a session marked by high volatility. While a modest after-hours uptick provided a sliver of relief, the strong selling pressure throughout the day points to a potentially challenging start to the coming week.
The banking giant ended the regular trading day at
1.63, or 2.20%. The day’s trading was a rollercoaster for investors. After opening at $72.92, the stock rallied to a midday high of $73.79. However, the gains were short-lived as a powerful wave of selling took over in the afternoon, dragging the price to a low of $71.93 before the market closed.
In a small sign of resilience, the stock recovered slightly in after-hours trading, gaining
72.65.
Analysis and Outlook for Monday:
The narrative for Wells Fargo on Thursday was one of bearish dominance. The failure to hold the midday peak and the subsequent steep decline into the close are strong technical indicators that sellers were firmly in control. A 2.20% drop is significant and suggests negative sentiment is weighing on the stock.
While the after-hours recovery is a positive footnote, its modest size may not be enough to reverse the powerful downward momentum from the main session. Therefore, the outlook for Wells Fargo for Monday’s market open is bearish to neutral.
Investors should anticipate a test of the recent low around the $72.00 mark. If the stock can hold this level and build on its small after-hours gain, it might signal stabilization. However, the more likely scenario is that the negative sentiment from Thursday will carry over, leading to further downside pressure or a flat, consolidatory open on Monday morning. The stock faces a significant hurdle to reclaim the $73 level.
