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Wells Fargo Stumbles in Volatile Session, But After-Hours Action Sparks Hope for a Monday Bounce

NEW YORK – Wells Fargo & Co. (WFC) shares ended a turbulent trading day in the red, closing at $72.36, a significant drop of 2.20%, or $1.63 per share. The decline saw the banking giant give back recent gains and close well below the previous day’s finish of $73.99.

The day’s trading was a tale of two halves. After opening at $72.92, the stock rallied in the morning, reaching a high of $73.79 shortly after noon. However, sellers took control in the afternoon, pushing the price down to a daily low of $71.93 before a modest recovery into the closing bell.

Despite the bearish sentiment that dominated the regular session, a crucial indicator for Monday’s open emerged in post-market activity. In after-hours trading, Wells Fargo shares saw a positive turn, climbing +0.29 (0.40%) to $72.65.

Analysis & Outlook for Monday:

The significant drop during regular hours suggests a wave of profit-taking or a reaction to broader market concerns. However, the after-hours rebound is a key bullish signal. This late buying pressure indicates that investors may view the 2.20% drop as an overreaction and are stepping in to buy what they perceive as a dip.

This “buy-the-dip” mentality, combined with the stock stabilizing and rising after the 4:00 pm close, suggests that the selling pressure may have been exhausted. For Monday, traders will be closely watching two key levels:

  • Support: The day’s low of $71.93 will act as a critical support level. If the stock can stay above this, it signals strength.

  • Resistance: The after-hours price of $72.65 will be the first hurdle. A break above this level could signal a continuation of the recovery and a move to fill the gap from Friday’s sell-off.

: While the daily headline shows a steep loss, the underlying action in the final hours of trading points toward a potential upward bias for Monday’s open. Investors appear to have found the lower price attractive, setting the stage for a potential rebound as the new trading week begins.

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